Correlation Between Kimco Realty and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Cedar 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 Cedar 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 Cedar Realty Trust, you can compare the effects of market volatilities on Kimco Realty and Cedar 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Cedar Realty.
Diversification Opportunities for Kimco Realty and Cedar Realty
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kimco and Cedar is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Kimco Realty i.e., Kimco Realty and Cedar Realty go up and down completely randomly.
Pair Corralation between Kimco Realty and Cedar Realty
Assuming the 90 days trading horizon Kimco Realty is expected to generate 5.34 times less return on investment than Cedar Realty. But when comparing it to its historical volatility, Kimco Realty is 2.08 times less risky than Cedar Realty. It trades about 0.03 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Cedar Realty Trust on September 2, 2024 and sell it today you would earn a total of 466.00 from holding Cedar Realty Trust or generate 49.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Cedar Realty Trust
Performance |
| Timeline |
| Kimco Realty |
| Cedar Realty Trust |
Kimco Realty and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Cedar Realty
The main advantage of trading using opposite Kimco Realty and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Cedar 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Saul Centers | Kimco Realty vs. Kimco Realty | Kimco Realty vs. Simon Property Group |
| Cedar Realty vs. Site Centers Corp | Cedar Realty vs. Urban Edge Properties | Cedar Realty vs. Retail Opportunity Investments | Cedar Realty vs. Brixmor Property |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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