Correlation Between Kimco Realty and Cars
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Cars 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 Cars into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Cars Inc, you can compare the effects of market volatilities on Kimco Realty and Cars 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 Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Cars.
Diversification Opportunities for Kimco Realty and Cars
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and Cars is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Cars Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cars Inc 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 Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cars Inc has no effect on the direction of Kimco Realty i.e., Kimco Realty and Cars go up and down completely randomly.
Pair Corralation between Kimco Realty and Cars
Assuming the 90 days horizon Kimco Realty is expected to generate 0.52 times more return on investment than Cars. However, Kimco Realty is 1.93 times less risky than Cars. It trades about 0.04 of its potential returns per unit of risk. Cars Inc is currently generating about -0.01 per unit of risk. If you would invest 1,611 in Kimco Realty on December 4, 2024 and sell it today you would earn a total of 469.00 from holding Kimco Realty or generate 29.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Cars Inc
Performance |
| Timeline |
| Kimco Realty |
| Cars Inc |
Kimco Realty and Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Cars
The main advantage of trading using opposite Kimco Realty and Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Cars 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 Cars will offset losses from the drop in Cars' long position.| Kimco Realty vs. Simon Property Group | Kimco Realty vs. Link Real Estate | Kimco Realty vs. Klpierre SA | Kimco Realty vs. Vicinity Centres |
| Cars vs. Taiwan Semiconductor Manufacturing | Cars vs. CHEMICAL INDUSTRIES | Cars vs. X FAB Silicon Foundries | Cars vs. EITZEN CHEMICALS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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