Correlation Between Kimco Realty and EPR Properties
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and EPR Properties 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 EPR Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and EPR Properties, you can compare the effects of market volatilities on Kimco Realty and EPR Properties 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 EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and EPR Properties.
Diversification Opportunities for Kimco Realty and EPR Properties
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and EPR is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and EPR Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR Properties 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 EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties has no effect on the direction of Kimco Realty i.e., Kimco Realty and EPR Properties go up and down completely randomly.
Pair Corralation between Kimco Realty and EPR Properties
Assuming the 90 days trading horizon Kimco Realty is expected to under-perform the EPR Properties. In addition to that, Kimco Realty is 1.97 times more volatile than EPR Properties. It trades about -0.11 of its total potential returns per unit of risk. EPR Properties is currently generating about 0.29 per unit of volatility. If you would invest 2,144 in EPR Properties on September 4, 2024 and sell it today you would earn a total of 63.00 from holding EPR Properties or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. EPR Properties
Performance |
| Timeline |
| Kimco Realty |
| EPR Properties |
Kimco Realty and EPR Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and EPR Properties
The main advantage of trading using opposite Kimco Realty and EPR Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, EPR Properties 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 EPR Properties will offset losses from the drop in EPR Properties' long position.| Kimco Realty vs. Simon Property Group | Kimco Realty vs. Saul Centers | Kimco Realty vs. Urban Edge Properties | Kimco Realty vs. Kite Realty Group |
| EPR Properties vs. Digital Realty Trust | EPR Properties vs. Digital Realty Trust | EPR Properties vs. Gladstone Land Corp | EPR Properties vs. EPR Properties |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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