Correlation Between Kimco Realty and PotlatchDeltic Corp
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and PotlatchDeltic Corp 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 PotlatchDeltic Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and PotlatchDeltic Corp, you can compare the effects of market volatilities on Kimco Realty and PotlatchDeltic Corp 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 PotlatchDeltic Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and PotlatchDeltic Corp.
Diversification Opportunities for Kimco Realty and PotlatchDeltic Corp
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimco and PotlatchDeltic is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and PotlatchDeltic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PotlatchDeltic Corp 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 PotlatchDeltic Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PotlatchDeltic Corp has no effect on the direction of Kimco Realty i.e., Kimco Realty and PotlatchDeltic Corp go up and down completely randomly.
Pair Corralation between Kimco Realty and PotlatchDeltic Corp
Considering the 90-day investment horizon Kimco Realty is expected to generate 1.01 times more return on investment than PotlatchDeltic Corp. However, Kimco Realty is 1.01 times more volatile than PotlatchDeltic Corp. It trades about 0.04 of its potential returns per unit of risk. PotlatchDeltic Corp is currently generating about 0.01 per unit of risk. If you would invest 1,989 in Kimco Realty on August 30, 2024 and sell it today you would earn a total of 589.00 from holding Kimco Realty or generate 29.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. PotlatchDeltic Corp
Performance |
| Timeline |
| Kimco Realty |
| PotlatchDeltic Corp |
Kimco Realty and PotlatchDeltic Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and PotlatchDeltic Corp
The main advantage of trading using opposite Kimco Realty and PotlatchDeltic Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, PotlatchDeltic Corp 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 PotlatchDeltic Corp will offset losses from the drop in PotlatchDeltic Corp's long position.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Site Centers Corp | Kimco Realty vs. Acadia Realty Trust | Kimco Realty vs. Retail Opportunity Investments |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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