Correlation Between Kimco Realty and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Mapletree Commercial 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 Mapletree Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Mapletree Commercial Trust, you can compare the effects of market volatilities on Kimco Realty and Mapletree Commercial 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 Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Mapletree Commercial.
Diversification Opportunities for Kimco Realty and Mapletree Commercial
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kimco and Mapletree is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial 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 Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of Kimco Realty i.e., Kimco Realty and Mapletree Commercial go up and down completely randomly.
Pair Corralation between Kimco Realty and Mapletree Commercial
Considering the 90-day investment horizon Kimco Realty is expected to generate 0.37 times more return on investment than Mapletree Commercial. However, Kimco Realty is 2.72 times less risky than Mapletree Commercial. It trades about -0.03 of its potential returns per unit of risk. Mapletree Commercial Trust is currently generating about -0.22 per unit of risk. If you would invest 2,457 in Kimco Realty on September 14, 2024 and sell it today you would lose (12.00) from holding Kimco Realty or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Mapletree Commercial Trust
Performance |
| Timeline |
| Kimco Realty |
| Mapletree Commercial |
Kimco Realty and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Mapletree Commercial
The main advantage of trading using opposite Kimco Realty and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial'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 |
| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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