Correlation Between Kimco Realty and CLPS
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and CLPS 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 CLPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and CLPS Inc, you can compare the effects of market volatilities on Kimco Realty and CLPS 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 CLPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and CLPS.
Diversification Opportunities for Kimco Realty and CLPS
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kimco and CLPS is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc 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 CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of Kimco Realty i.e., Kimco Realty and CLPS go up and down completely randomly.
Pair Corralation between Kimco Realty and CLPS
Assuming the 90 days trading horizon Kimco Realty is expected to generate 0.28 times more return on investment than CLPS. However, Kimco Realty is 3.56 times less risky than CLPS. It trades about -0.11 of its potential returns per unit of risk. CLPS Inc is currently generating about -0.07 per unit of risk. If you would invest 6,135 in Kimco Realty on October 9, 2024 and sell it today you would lose (109.00) from holding Kimco Realty or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. CLPS Inc
Performance |
| Timeline |
| Kimco Realty |
| CLPS Inc |
Kimco Realty and CLPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and CLPS
The main advantage of trading using opposite Kimco Realty and CLPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, CLPS 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 CLPS will offset losses from the drop in CLPS's long position.| Kimco Realty vs. Paysafe | Kimco Realty vs. Lincoln Electric Holdings | Kimco Realty vs. United Homes Group | Kimco Realty vs. Addus HomeCare |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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