Correlation Between Kite Realty and Analog Devices
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Analog Devices 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 Kite Realty and Analog Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kite Realty Group and Analog Devices, you can compare the effects of market volatilities on Kite Realty and Analog Devices 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 Kite Realty with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Analog Devices.
Diversification Opportunities for Kite Realty and Analog Devices
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kite and Analog is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and Kite 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 Kite Realty Group are associated (or correlated) with Analog Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices has no effect on the direction of Kite Realty i.e., Kite Realty and Analog Devices go up and down completely randomly.
Pair Corralation between Kite Realty and Analog Devices
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.73 times more return on investment than Analog Devices. However, Kite Realty Group is 1.37 times less risky than Analog Devices. It trades about 0.09 of its potential returns per unit of risk. Analog Devices is currently generating about 0.05 per unit of risk. If you would invest 1,952 in Kite Realty Group on August 29, 2024 and sell it today you would earn a total of 833.00 from holding Kite Realty Group or generate 42.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Analog Devices
Performance |
| Timeline |
| Kite Realty Group |
| Analog Devices |
Kite Realty and Analog Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Analog Devices
The main advantage of trading using opposite Kite Realty and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Analog Devices 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 Analog Devices will offset losses from the drop in Analog Devices' long position.| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty Trust |
| Analog Devices vs. ABIVAX Socit Anonyme | Analog Devices vs. Morningstar Unconstrained Allocation | Analog Devices vs. SPACE | Analog Devices vs. Knife River |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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