Correlation Between Kimco Realty and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Dow Jones Industrial, you can compare the effects of market volatilities on Kimco Realty and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Dow Jones.
Diversification Opportunities for Kimco Realty and Dow Jones
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and Dow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Kimco Realty i.e., Kimco Realty and Dow Jones go up and down completely randomly.
Pair Corralation between Kimco Realty and Dow Jones
Assuming the 90 days trading horizon Kimco Realty is expected to under-perform the Dow Jones. But the stock apears to be less risky and, when comparing its historical volatility, Kimco Realty is 1.76 times less risky than Dow Jones. The stock trades about -0.12 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,391,098 in Dow Jones Industrial on September 13, 2024 and sell it today you would earn a total of 23,758 from holding Dow Jones Industrial or generate 0.54% 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. Dow Jones Industrial
Performance |
| Timeline |
Kimco Realty and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Kimco Realty
Pair trading matchups for Kimco Realty
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Kimco Realty and Dow Jones
The main advantage of trading using opposite Kimco Realty and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Kimco Realty vs. Hawkins | Kimco Realty vs. Chemours Co | Kimco Realty vs. Universal | Kimco Realty vs. The Mosaic |
| Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |