Correlation Between Kimco Realty and Universal Health
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Universal Health 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 Universal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Universal Health Realty, you can compare the effects of market volatilities on Kimco Realty and Universal Health 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 Universal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Universal Health.
Diversification Opportunities for Kimco Realty and Universal Health
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimco and Universal is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Universal Health Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Health 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 Universal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Health Realty has no effect on the direction of Kimco Realty i.e., Kimco Realty and Universal Health go up and down completely randomly.
Pair Corralation between Kimco Realty and Universal Health
Considering the 90-day investment horizon Kimco Realty is expected to generate 0.75 times more return on investment than Universal Health. However, Kimco Realty is 1.33 times less risky than Universal Health. It trades about 0.33 of its potential returns per unit of risk. Universal Health Realty is currently generating about 0.12 per unit of risk. If you would invest 2,388 in Kimco Realty on August 28, 2024 and sell it today you would earn a total of 166.00 from holding Kimco Realty or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimco Realty vs. Universal Health Realty
Performance |
| Timeline |
| Kimco Realty |
| Universal Health Realty |
Kimco Realty and Universal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimco Realty and Universal Health
The main advantage of trading using opposite Kimco Realty and Universal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Universal Health 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 Universal Health will offset losses from the drop in Universal Health's long position.| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. Netstreit Corp |
| Universal Health vs. Healthcare Realty Trust | Universal Health vs. Healthpeak Properties | Universal Health vs. Sabra Healthcare REIT | Universal Health vs. Community Healthcare 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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