Correlation Between Kimco Realty and Global Net
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Global Net 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 Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Global Net Lease,, you can compare the effects of market volatilities on Kimco Realty and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Global Net.
Diversification Opportunities for Kimco Realty and Global Net
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kimco and Global is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Global Net Lease, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease, 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease, has no effect on the direction of Kimco Realty i.e., Kimco Realty and Global Net go up and down completely randomly.
Pair Corralation between Kimco Realty and Global Net
Considering the 90-day investment horizon Kimco Realty is expected to generate 0.72 times more return on investment than Global Net. However, Kimco Realty is 1.38 times less risky than Global Net. It trades about 0.1 of its potential returns per unit of risk. Global Net Lease, is currently generating about 0.0 per unit of risk. If you would invest 1,802 in Kimco Realty on August 24, 2024 and sell it today you would earn a total of 729.00 from holding Kimco Realty or generate 40.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Global Net Lease,
Performance |
| Timeline |
| Kimco Realty |
| Global Net Lease, |
Kimco Realty and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Global Net
The main advantage of trading using opposite Kimco Realty and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Kimco Realty vs. Federal Realty Investment | Kimco Realty vs. Agree Realty | Kimco Realty vs. Tanger Factory Outlet | Kimco Realty vs. Netstreit Corp |
| Global Net vs. Peakstone Realty Trust | Global Net vs. Gladstone Commercial | Global Net vs. CTO Realty Growth | Global Net vs. Brightspire Capital |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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