Correlation Between Kite Realty and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Amkor Technology 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 Amkor Technology 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 Amkor Technology, you can compare the effects of market volatilities on Kite Realty and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Amkor Technology.
Diversification Opportunities for Kite Realty and Amkor Technology
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kite and Amkor is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Kite Realty i.e., Kite Realty and Amkor Technology go up and down completely randomly.
Pair Corralation between Kite Realty and Amkor Technology
Considering the 90-day investment horizon Kite Realty is expected to generate 1.41 times less return on investment than Amkor Technology. But when comparing it to its historical volatility, Kite Realty Group is 2.16 times less risky than Amkor Technology. It trades about 0.08 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,602 in Amkor Technology on September 5, 2024 and sell it today you would earn a total of 52.00 from holding Amkor Technology or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Amkor Technology
Performance |
| Timeline |
| Kite Realty Group |
| Amkor Technology |
Kite Realty and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Amkor Technology
The main advantage of trading using opposite Kite Realty and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's 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 |
| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor | Amkor Technology vs. GSI Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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