Correlation Between Kimco Realty and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and SITE Centers 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 SITE Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and SITE Centers Corp, you can compare the effects of market volatilities on Kimco Realty and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and SITE Centers.
Diversification Opportunities for Kimco Realty and SITE Centers
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and SITE is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers Corp 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Kimco Realty i.e., Kimco Realty and SITE Centers go up and down completely randomly.
Pair Corralation between Kimco Realty and SITE Centers
Assuming the 90 days trading horizon Kimco Realty is expected to generate 1.23 times less return on investment than SITE Centers. But when comparing it to its historical volatility, Kimco Realty is 1.25 times less risky than SITE Centers. It trades about 0.06 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,839 in SITE Centers Corp on September 3, 2024 and sell it today you would earn a total of 677.00 from holding SITE Centers Corp or generate 36.81% 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. SITE Centers Corp
Performance |
| Timeline |
| Kimco Realty |
| SITE Centers Corp |
Kimco Realty and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and SITE Centers
The main advantage of trading using opposite Kimco Realty and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' long position.| Kimco Realty vs. Agree Realty | Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Saul Centers |
| SITE Centers vs. Site Centers Corp | SITE Centers vs. Saul Centers | SITE Centers vs. Acadia Realty Trust | SITE Centers vs. Kite Realty Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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