Correlation Between Kimco Realty and RPT Realty
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and RPT Realty 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 RPT Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and RPT Realty, you can compare the effects of market volatilities on Kimco Realty and RPT Realty 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 RPT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and RPT Realty.
Diversification Opportunities for Kimco Realty and RPT Realty
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kimco and RPT is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and RPT Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPT Realty 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 RPT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPT Realty has no effect on the direction of Kimco Realty i.e., Kimco Realty and RPT Realty go up and down completely randomly.
Pair Corralation between Kimco Realty and RPT Realty
Considering the 90-day investment horizon Kimco Realty is expected to generate 0.82 times more return on investment than RPT Realty. However, Kimco Realty is 1.22 times less risky than RPT Realty. It trades about 0.04 of its potential returns per unit of risk. RPT Realty is currently generating about 0.03 per unit of risk. If you would invest 1,994 in Kimco Realty on August 28, 2024 and sell it today you would earn a total of 560.00 from holding Kimco Realty or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.72% |
| Values | Daily Returns |
Kimco Realty vs. RPT Realty
Performance |
| Timeline |
| Kimco Realty |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kimco Realty and RPT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and RPT Realty
The main advantage of trading using opposite Kimco Realty and RPT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, RPT Realty 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 RPT Realty will offset losses from the drop in RPT Realty's long position.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. Netstreit Corp |
| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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