Correlation Between Kimco Realty and Columbia Sportswear
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Columbia Sportswear 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 Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Columbia Sportswear, you can compare the effects of market volatilities on Kimco Realty and Columbia Sportswear 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 Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Columbia Sportswear.
Diversification Opportunities for Kimco Realty and Columbia Sportswear
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and Columbia is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear 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 Columbia Sportswear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Sportswear has no effect on the direction of Kimco Realty i.e., Kimco Realty and Columbia Sportswear go up and down completely randomly.
Pair Corralation between Kimco Realty and Columbia Sportswear
Assuming the 90 days horizon Kimco Realty is expected to generate 0.92 times more return on investment than Columbia Sportswear. However, Kimco Realty is 1.09 times less risky than Columbia Sportswear. It trades about 0.04 of its potential returns per unit of risk. Columbia Sportswear is currently generating about 0.02 per unit of risk. If you would invest 1,795 in Kimco Realty on September 12, 2024 and sell it today you would earn a total of 545.00 from holding Kimco Realty or generate 30.36% 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. Columbia Sportswear
Performance |
| Timeline |
| Kimco Realty |
| Columbia Sportswear |
Kimco Realty and Columbia Sportswear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Columbia Sportswear
The main advantage of trading using opposite Kimco Realty and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Columbia Sportswear 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 Columbia Sportswear will offset losses from the drop in Columbia Sportswear's long position.| Kimco Realty vs. Japan Asia Investment | Kimco Realty vs. Warner Music Group | Kimco Realty vs. DIVERSIFIED ROYALTY | Kimco Realty vs. Zoom Video Communications |
| Columbia Sportswear vs. Superior Plus Corp | Columbia Sportswear vs. SIVERS SEMICONDUCTORS AB | Columbia Sportswear vs. Norsk Hydro ASA | Columbia Sportswear vs. Reliance Steel Aluminum |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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