Correlation Between Kimco Realty and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Acadia Realty 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 Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Acadia Realty Trust, you can compare the effects of market volatilities on Kimco Realty and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Acadia Realty.
Diversification Opportunities for Kimco Realty and Acadia Realty
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kimco and Acadia is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Kimco Realty i.e., Kimco Realty and Acadia Realty go up and down completely randomly.
Pair Corralation between Kimco Realty and Acadia Realty
Assuming the 90 days horizon Kimco Realty is expected to generate 0.88 times more return on investment than Acadia Realty. However, Kimco Realty is 1.14 times less risky than Acadia Realty. It trades about 0.45 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.35 per unit of risk. If you would invest 2,200 in Kimco Realty on August 29, 2024 and sell it today you would earn a total of 200.00 from holding Kimco Realty or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Acadia Realty Trust
Performance |
| Timeline |
| Kimco Realty |
| Acadia Realty Trust |
Kimco Realty and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Acadia Realty
The main advantage of trading using opposite Kimco Realty and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| Kimco Realty vs. American Homes 4 | Kimco Realty vs. Corporate Office Properties | Kimco Realty vs. Siamgas And Petrochemicals | Kimco Realty vs. Mitsubishi Gas Chemical |
| Acadia Realty vs. Elmos Semiconductor SE | Acadia Realty vs. TRAINLINE PLC LS | Acadia Realty vs. TEXAS ROADHOUSE | Acadia Realty vs. Nishi Nippon Railroad Co |
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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