Correlation Between Kimco Realty and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Superior Plus at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kimco Realty and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Superior Plus Corp, you can compare the effects of market volatilities on Kimco Realty and Superior Plus and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kimco Realty with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Superior Plus.
Diversification Opportunities for Kimco Realty and Superior Plus
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kimco and Superior is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Kimco Realty is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kimco Realty are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Kimco Realty i.e., Kimco Realty and Superior Plus go up and down completely randomly.
Pair Corralation between Kimco Realty and Superior Plus
Assuming the 90 days horizon Kimco Realty is expected to under-perform the Superior Plus. But the stock apears to be less risky and, when comparing its historical volatility, Kimco Realty is 1.36 times less risky than Superior Plus. The stock trades about -0.18 of its potential returns per unit of risk. The Superior Plus Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 413.00 in Superior Plus Corp on October 25, 2024 and sell it today you would earn a total of 15.00 from holding Superior Plus Corp or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Kimco Realty vs. Superior Plus Corp
Performance |
| Timeline |
| Kimco Realty |
| Superior Plus Corp |
Kimco Realty and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Superior Plus
The main advantage of trading using opposite Kimco Realty and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Superior Plus can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Superior Plus will offset losses from the drop in Superior Plus' long position.| Kimco Realty vs. Cars Inc | Kimco Realty vs. Major Drilling Group | Kimco Realty vs. YATRA ONLINE DL 0001 | Kimco Realty vs. Carsales |
| Superior Plus vs. CITY OFFICE REIT | Superior Plus vs. Infrastrutture Wireless Italiane | Superior Plus vs. Fuji Media Holdings | Superior Plus vs. Live Nation Entertainment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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