Correlation Between Coca Cola and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Kite 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 Coca Cola and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and Kite Realty Group, you can compare the effects of market volatilities on Coca Cola and Kite 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 Coca Cola with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Kite Realty.
Diversification Opportunities for Coca Cola and Kite Realty
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coca and Kite is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group and Coca Cola 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 The Coca Cola are associated (or correlated) with Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Coca Cola i.e., Coca Cola and Kite Realty go up and down completely randomly.
Pair Corralation between Coca Cola and Kite Realty
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 5.54 times less return on investment than Kite Realty. But when comparing it to its historical volatility, The Coca Cola is 1.37 times less risky than Kite Realty. It trades about 0.04 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,170 in Kite Realty Group on August 31, 2024 and sell it today you would earn a total of 587.00 from holding Kite Realty Group or generate 27.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Kite Realty Group
Performance |
| Timeline |
| Coca Cola |
| Kite Realty Group |
Coca Cola and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Kite Realty
The main advantage of trading using opposite Coca Cola and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Kite 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 Kite Realty will offset losses from the drop in Kite Realty's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International | Coca Cola vs. Stepstone Group |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |