Correlation Between Kimco Realty and Agree Realty
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Agree 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 Agree 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 Agree Realty, you can compare the effects of market volatilities on Kimco Realty and Agree 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 Agree Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Agree Realty.
Diversification Opportunities for Kimco Realty and Agree Realty
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimco and Agree is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty 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 Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of Kimco Realty i.e., Kimco Realty and Agree Realty go up and down completely randomly.
Pair Corralation between Kimco Realty and Agree Realty
Assuming the 90 days trading horizon Kimco Realty is expected to generate 1.03 times less return on investment than Agree Realty. But when comparing it to its historical volatility, Kimco Realty is 1.06 times less risky than Agree Realty. It trades about 0.06 of its potential returns per unit of risk. Agree Realty is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,509 in Agree Realty on September 5, 2024 and sell it today you would earn a total of 460.00 from holding Agree Realty or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kimco Realty vs. Agree Realty
Performance |
| Timeline |
| Kimco Realty |
| Agree Realty |
Kimco Realty and Agree Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Agree Realty
The main advantage of trading using opposite Kimco Realty and Agree Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Agree 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 Agree Realty will offset losses from the drop in Agree Realty's long position.| Kimco Realty vs. Agree Realty | Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Saul Centers |
| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Vornado Realty Trust | Agree Realty vs. Rexford Industrial Realty | Agree Realty vs. Digital Realty Trust |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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