Correlation Between Kimco Realty and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Armada Hflr 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 Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Armada Hflr Pr, you can compare the effects of market volatilities on Kimco Realty and Armada Hflr 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 Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Armada Hflr.
Diversification Opportunities for Kimco Realty and Armada Hflr
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimco and Armada is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Armada Hflr Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hflr Pr 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 Armada Hflr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hflr Pr has no effect on the direction of Kimco Realty i.e., Kimco Realty and Armada Hflr go up and down completely randomly.
Pair Corralation between Kimco Realty and Armada Hflr
Considering the 90-day investment horizon Kimco Realty is expected to generate 0.98 times more return on investment than Armada Hflr. However, Kimco Realty is 1.02 times less risky than Armada Hflr. It trades about 0.35 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about 0.03 per unit of risk. If you would invest 2,355 in Kimco Realty on August 26, 2024 and sell it today you would earn a total of 182.00 from holding Kimco Realty or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Armada Hflr Pr
Performance |
| Timeline |
| Kimco Realty |
| Armada Hflr Pr |
Kimco Realty and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Armada Hflr
The main advantage of trading using opposite Kimco Realty and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Armada Hflr 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 Armada Hflr will offset losses from the drop in Armada Hflr's long position.The idea behind Kimco Realty and Armada Hflr Pr pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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