Correlation Between Kimco Realty and Funko
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Funko 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 Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Funko Inc, you can compare the effects of market volatilities on Kimco Realty and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Funko.
Diversification Opportunities for Kimco Realty and Funko
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kimco and Funko is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Kimco Realty i.e., Kimco Realty and Funko go up and down completely randomly.
Pair Corralation between Kimco Realty and Funko
Assuming the 90 days trading horizon Kimco Realty is expected to generate 4.75 times less return on investment than Funko. But when comparing it to its historical volatility, Kimco Realty is 3.51 times less risky than Funko. It trades about 0.11 of its potential returns per unit of risk. Funko Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 857.00 in Funko Inc on November 3, 2024 and sell it today you would earn a total of 543.00 from holding Funko Inc or generate 63.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Kimco Realty vs. Funko Inc
Performance |
| Timeline |
| Kimco Realty |
| Funko Inc |
Kimco Realty and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Funko
The main advantage of trading using opposite Kimco Realty and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Kimco Realty vs. Mangazeya Mining | Kimco Realty vs. Barrick Gold Corp | Kimco Realty vs. Cementos Pacasmayo SAA | Kimco Realty vs. Parker Hannifin |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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