Correlation Between Kimco Realty and Scentre
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Scentre 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 Scentre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Scentre Group, you can compare the effects of market volatilities on Kimco Realty and Scentre 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 Scentre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Scentre.
Diversification Opportunities for Kimco Realty and Scentre
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kimco and Scentre is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Scentre Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scentre Group 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 Scentre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scentre Group has no effect on the direction of Kimco Realty i.e., Kimco Realty and Scentre go up and down completely randomly.
Pair Corralation between Kimco Realty and Scentre
Considering the 90-day investment horizon Kimco Realty is expected to generate 1.25 times more return on investment than Scentre. However, Kimco Realty is 1.25 times more volatile than Scentre Group. It trades about -0.09 of its potential returns per unit of risk. Scentre Group is currently generating about -0.23 per unit of risk. If you would invest 2,317 in Kimco Realty on November 4, 2024 and sell it today you would lose (72.00) from holding Kimco Realty or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kimco Realty vs. Scentre Group
Performance |
| Timeline |
| Kimco Realty |
| Scentre Group |
Kimco Realty and Scentre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Scentre
The main advantage of trading using opposite Kimco Realty and Scentre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Scentre 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 Scentre will offset losses from the drop in Scentre's long position.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. Netstreit Corp |
| Scentre vs. Mapletree Commercial Trust | Scentre vs. Retail Opportunity Investments | Scentre vs. Kimco Realty |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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