Correlation Between Kimco Realty and Federal Realty
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Federal Realty 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 Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Federal Realty Investment, you can compare the effects of market volatilities on Kimco Realty and Federal Realty 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 Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Federal Realty.
Diversification Opportunities for Kimco Realty and Federal Realty
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kimco and Federal is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment 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 Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of Kimco Realty i.e., Kimco Realty and Federal Realty go up and down completely randomly.
Pair Corralation between Kimco Realty and Federal Realty
Considering the 90-day investment horizon Kimco Realty is expected to generate 1.14 times more return on investment than Federal Realty. However, Kimco Realty is 1.14 times more volatile than Federal Realty Investment. It trades about 0.15 of its potential returns per unit of risk. Federal Realty Investment is currently generating about -0.01 per unit of risk. If you would invest 2,299 in Kimco Realty on August 23, 2024 and sell it today you would earn a total of 232.00 from holding Kimco Realty or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Federal Realty Investment
Performance |
| Timeline |
| Kimco Realty |
| Federal Realty Investment |
Kimco Realty and Federal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Federal Realty
The main advantage of trading using opposite Kimco Realty and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Federal Realty 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 Federal Realty will offset losses from the drop in Federal Realty's long position.| Kimco Realty vs. Site Centers Corp | Kimco Realty vs. CBL Associates Properties | Kimco Realty vs. Urban Edge Properties | Kimco Realty vs. Acadia Realty Trust |
| Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco Realty |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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