Correlation Between Kimco Realty and Inventrust Properties
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Inventrust Properties 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 Inventrust Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Inventrust Properties Corp, you can compare the effects of market volatilities on Kimco Realty and Inventrust Properties 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 Inventrust Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Inventrust Properties.
Diversification Opportunities for Kimco Realty and Inventrust Properties
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kimco and Inventrust is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Inventrust Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventrust Properties 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 Inventrust Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventrust Properties has no effect on the direction of Kimco Realty i.e., Kimco Realty and Inventrust Properties go up and down completely randomly.
Pair Corralation between Kimco Realty and Inventrust Properties
Considering the 90-day investment horizon Kimco Realty is expected to generate 1.17 times less return on investment than Inventrust Properties. In addition to that, Kimco Realty is 1.09 times more volatile than Inventrust Properties Corp. It trades about 0.04 of its total potential returns per unit of risk. Inventrust Properties Corp is currently generating about 0.05 per unit of volatility. If you would invest 2,286 in Inventrust Properties Corp on August 24, 2024 and sell it today you would earn a total of 789.00 from holding Inventrust Properties Corp or generate 34.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Inventrust Properties Corp
Performance |
| Timeline |
| Kimco Realty |
| Inventrust Properties |
Kimco Realty and Inventrust Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Inventrust Properties
The main advantage of trading using opposite Kimco Realty and Inventrust Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Inventrust Properties 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 Inventrust Properties will offset losses from the drop in Inventrust Properties' long position.| Kimco Realty vs. Federal Realty Investment | Kimco Realty vs. Agree Realty | Kimco Realty vs. Tanger Factory Outlet | Kimco Realty vs. Netstreit Corp |
| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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