Correlation Between Kimco Realty and WFD Unibail
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and WFD Unibail 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 WFD Unibail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and WFD Unibail Rodamco, you can compare the effects of market volatilities on Kimco Realty and WFD Unibail 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 WFD Unibail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and WFD Unibail.
Diversification Opportunities for Kimco Realty and WFD Unibail
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kimco and WFD is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and WFD Unibail Rodamco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WFD Unibail Rodamco 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 WFD Unibail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WFD Unibail Rodamco has no effect on the direction of Kimco Realty i.e., Kimco Realty and WFD Unibail go up and down completely randomly.
Pair Corralation between Kimco Realty and WFD Unibail
Assuming the 90 days trading horizon Kimco Realty is expected to generate 10.51 times less return on investment than WFD Unibail. But when comparing it to its historical volatility, Kimco Realty is 2.56 times less risky than WFD Unibail. It trades about 0.01 of its potential returns per unit of risk. WFD Unibail Rodamco is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,579 in WFD Unibail Rodamco on September 2, 2024 and sell it today you would earn a total of 1,514 from holding WFD Unibail Rodamco or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 79.84% |
| Values | Daily Returns |
Kimco Realty vs. WFD Unibail Rodamco
Performance |
| Timeline |
| Kimco Realty |
| WFD Unibail Rodamco |
Kimco Realty and WFD Unibail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and WFD Unibail
The main advantage of trading using opposite Kimco Realty and WFD Unibail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, WFD Unibail 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 WFD Unibail will offset losses from the drop in WFD Unibail's 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 |
| WFD Unibail vs. Kimco Realty | WFD Unibail vs. Simon Property Group | WFD Unibail vs. Saul Centers | WFD Unibail 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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