Correlation Between Kimco Realty and One Liberty
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and One Liberty 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 One Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and One Liberty Properties, you can compare the effects of market volatilities on Kimco Realty and One Liberty 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 One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and One Liberty.
Diversification Opportunities for Kimco Realty and One Liberty
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kimco and One is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty 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 One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of Kimco Realty i.e., Kimco Realty and One Liberty go up and down completely randomly.
Pair Corralation between Kimco Realty and One Liberty
Considering the 90-day investment horizon Kimco Realty is expected to generate 1.39 times less return on investment than One Liberty. But when comparing it to its historical volatility, Kimco Realty is 1.77 times less risky than One Liberty. It trades about 0.42 of its potential returns per unit of risk. One Liberty Properties is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,683 in One Liberty Properties on August 30, 2024 and sell it today you would earn a total of 332.00 from holding One Liberty Properties or generate 12.37% 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. One Liberty Properties
Performance |
| Timeline |
| Kimco Realty |
| One Liberty Properties |
Kimco Realty and One Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and One Liberty
The main advantage of trading using opposite Kimco Realty and One Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, One Liberty 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 One Liberty will offset losses from the drop in One Liberty's long position.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. Netstreit Corp |
| One Liberty vs. VICI Properties | One Liberty vs. Essential Properties Realty | One Liberty vs. Empire State Realty | One Liberty vs. American Assets 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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