Correlation Between Kimco Realty and Public Storage
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Public Storage 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 Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Public Storage, you can compare the effects of market volatilities on Kimco Realty and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Public Storage.
Diversification Opportunities for Kimco Realty and Public Storage
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kimco and Public is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Kimco Realty i.e., Kimco Realty and Public Storage go up and down completely randomly.
Pair Corralation between Kimco Realty and Public Storage
Assuming the 90 days trading horizon Kimco Realty is expected to generate 0.99 times more return on investment than Public Storage. However, Kimco Realty is 1.01 times less risky than Public Storage. It trades about -0.13 of its potential returns per unit of risk. Public Storage is currently generating about -0.16 per unit of risk. If you would invest 2,282 in Kimco Realty on August 28, 2024 and sell it today you would lose (57.00) from holding Kimco Realty or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kimco Realty vs. Public Storage
Performance |
| Timeline |
| Kimco Realty |
| Public Storage |
Kimco Realty and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Public Storage
The main advantage of trading using opposite Kimco Realty and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage'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 |
| Public Storage vs. Public Storage | Public Storage vs. Public Storage | Public Storage vs. Public Storage | Public Storage vs. Public Storage |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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