Correlation Between Kimco Realty and Range Resources
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Range Resources 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 Range Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Range Resources Corp, you can compare the effects of market volatilities on Kimco Realty and Range Resources 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 Range Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Range Resources.
Diversification Opportunities for Kimco Realty and Range Resources
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and Range is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Range Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Range Resources 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 Range Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Range Resources Corp has no effect on the direction of Kimco Realty i.e., Kimco Realty and Range Resources go up and down completely randomly.
Pair Corralation between Kimco Realty and Range Resources
Assuming the 90 days horizon Kimco Realty is expected to generate 1.08 times more return on investment than Range Resources. However, Kimco Realty is 1.08 times more volatile than Range Resources Corp. It trades about -0.06 of its potential returns per unit of risk. Range Resources Corp is currently generating about -0.11 per unit of risk. If you would invest 2,220 in Kimco Realty on October 29, 2024 and sell it today you would lose (40.00) from holding Kimco Realty or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Range Resources Corp
Performance |
| Timeline |
| Kimco Realty |
| Range Resources Corp |
Kimco Realty and Range Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Range Resources
The main advantage of trading using opposite Kimco Realty and Range Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Range Resources 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 Range Resources will offset losses from the drop in Range Resources' long position.| Kimco Realty vs. Simon Property Group | Kimco Realty vs. Realty Income | Kimco Realty vs. Range Resources Corp | Kimco Realty vs. Klpierre SA |
| Range Resources vs. Simon Property Group | Range Resources vs. Realty Income | Range Resources vs. Kimco Realty | Range Resources vs. Klpierre SA |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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