Correlation Between Kimco Realty and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Vastned Retail 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 Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Vastned Retail NV, you can compare the effects of market volatilities on Kimco Realty and Vastned Retail 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 Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Vastned Retail.
Diversification Opportunities for Kimco Realty and Vastned Retail
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kimco and Vastned is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Vastned Retail NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastned Retail NV 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 Vastned Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vastned Retail NV has no effect on the direction of Kimco Realty i.e., Kimco Realty and Vastned Retail go up and down completely randomly.
Pair Corralation between Kimco Realty and Vastned Retail
Assuming the 90 days horizon Kimco Realty is expected to generate 1.65 times more return on investment than Vastned Retail. However, Kimco Realty is 1.65 times more volatile than Vastned Retail NV. It trades about 0.2 of its potential returns per unit of risk. Vastned Retail NV is currently generating about 0.07 per unit of risk. If you would invest 2,076 in Kimco Realty on September 4, 2024 and sell it today you would earn a total of 324.00 from holding Kimco Realty or generate 15.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Kimco Realty vs. Vastned Retail NV
Performance |
| Timeline |
| Kimco Realty |
| Vastned Retail NV |
Kimco Realty and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Vastned Retail
The main advantage of trading using opposite Kimco Realty and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Vastned Retail 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 Vastned Retail will offset losses from the drop in Vastned Retail's long position.| Kimco Realty vs. Columbia Sportswear | Kimco Realty vs. NTG Nordic Transport | Kimco Realty vs. JD SPORTS FASH | Kimco Realty vs. COLUMBIA SPORTSWEAR |
| Vastned Retail vs. Simon Property Group | Vastned Retail vs. Link Real Estate | Vastned Retail vs. Kimco Realty | Vastned Retail vs. Range Resources Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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