Correlation Between Kimco Realty and Gladstone Land
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Gladstone Land 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 Gladstone Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Gladstone Land, you can compare the effects of market volatilities on Kimco Realty and Gladstone Land 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 Gladstone Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Gladstone Land.
Diversification Opportunities for Kimco Realty and Gladstone Land
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kimco and Gladstone is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Gladstone Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Land 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 Gladstone Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Land has no effect on the direction of Kimco Realty i.e., Kimco Realty and Gladstone Land go up and down completely randomly.
Pair Corralation between Kimco Realty and Gladstone Land
Considering the 90-day investment horizon Kimco Realty is expected to generate 0.6 times more return on investment than Gladstone Land. However, Kimco Realty is 1.67 times less risky than Gladstone Land. It trades about 0.36 of its potential returns per unit of risk. Gladstone Land is currently generating about -0.28 per unit of risk. If you would invest 2,402 in Kimco Realty on August 31, 2024 and sell it today you would earn a total of 176.00 from holding Kimco Realty or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kimco Realty vs. Gladstone Land
Performance |
| Timeline |
| Kimco Realty |
| Gladstone Land |
Kimco Realty and Gladstone Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Gladstone Land
The main advantage of trading using opposite Kimco Realty and Gladstone Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Gladstone Land 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 Gladstone Land will offset losses from the drop in Gladstone Land's long position.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. Netstreit Corp |
| Gladstone Land vs. Farmland Partners | Gladstone Land vs. STAG Industrial | Gladstone Land vs. Gladstone Commercial | Gladstone Land vs. LTC Properties |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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