Correlation Between Kimco Realty and Link Real
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Link Real 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 Link Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Link Real Estate, you can compare the effects of market volatilities on Kimco Realty and Link Real 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 Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Link Real.
Diversification Opportunities for Kimco Realty and Link Real
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and Link is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate 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 Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of Kimco Realty i.e., Kimco Realty and Link Real go up and down completely randomly.
Pair Corralation between Kimco Realty and Link Real
Assuming the 90 days trading horizon Kimco Realty is expected to generate 0.32 times more return on investment than Link Real. However, Kimco Realty is 3.12 times less risky than Link Real. It trades about -0.21 of its potential returns per unit of risk. Link Real Estate is currently generating about -0.12 per unit of risk. If you would invest 2,465 in Kimco Realty on August 25, 2024 and sell it today you would lose (190.00) from holding Kimco Realty or give up 7.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Link Real Estate
Performance |
| Timeline |
| Kimco Realty |
| Link Real Estate |
Kimco Realty and Link Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Link Real
The main advantage of trading using opposite Kimco Realty and Link Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Link Real 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 Link Real will offset losses from the drop in Link Real's long position.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Wheeler Real Estate | Kimco Realty vs. Macerich Company | Kimco Realty vs. Simon Property Group |
| Link Real vs. Kimco Realty | Link Real vs. Simon Property Group | Link Real vs. Saul Centers | Link Real vs. Kimco Realty |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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