Correlation Between Kimco Realty and Innovative Industrial
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Innovative Industrial 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 Innovative Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Innovative Industrial Properties, you can compare the effects of market volatilities on Kimco Realty and Innovative Industrial 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 Innovative Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Innovative Industrial.
Diversification Opportunities for Kimco Realty and Innovative Industrial
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kimco and Innovative is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Innovative Industrial Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Industrial 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 Innovative Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Industrial has no effect on the direction of Kimco Realty i.e., Kimco Realty and Innovative Industrial go up and down completely randomly.
Pair Corralation between Kimco Realty and Innovative Industrial
Considering the 90-day investment horizon Kimco Realty is expected to generate 0.34 times more return on investment than Innovative Industrial. However, Kimco Realty is 2.92 times less risky than Innovative Industrial. It trades about 0.23 of its potential returns per unit of risk. Innovative Industrial Properties is currently generating about -0.29 per unit of risk. If you would invest 2,396 in Kimco Realty on August 24, 2024 and sell it today you would earn a total of 135.00 from holding Kimco Realty or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Innovative Industrial Properti
Performance |
| Timeline |
| Kimco Realty |
| Innovative Industrial |
Kimco Realty and Innovative Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Innovative Industrial
The main advantage of trading using opposite Kimco Realty and Innovative Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Innovative Industrial 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 Innovative Industrial will offset losses from the drop in Innovative Industrial'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 |
| Innovative Industrial vs. Prologis | Innovative Industrial vs. Public Storage | Innovative Industrial vs. Extra Space Storage | Innovative Industrial vs. CubeSmart |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |