Correlation Between Kite Realty and Artisan Partners
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Artisan Partners 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 Artisan Partners 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 Artisan Partners Asset, you can compare the effects of market volatilities on Kite Realty and Artisan Partners 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 Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Artisan Partners.
Diversification Opportunities for Kite Realty and Artisan Partners
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kite and Artisan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset 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 Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of Kite Realty i.e., Kite Realty and Artisan Partners go up and down completely randomly.
Pair Corralation between Kite Realty and Artisan Partners
Considering the 90-day investment horizon Kite Realty is expected to generate 1.41 times less return on investment than Artisan Partners. But when comparing it to its historical volatility, Kite Realty Group is 2.23 times less risky than Artisan Partners. It trades about 0.31 of its potential returns per unit of risk. Artisan Partners Asset is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,440 in Artisan Partners Asset on August 31, 2024 and sell it today you would earn a total of 423.00 from holding Artisan Partners Asset or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Artisan Partners Asset
Performance |
| Timeline |
| Kite Realty Group |
| Artisan Partners Asset |
Kite Realty and Artisan Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Artisan Partners
The main advantage of trading using opposite Kite Realty and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Artisan Partners 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 Artisan Partners will offset losses from the drop in Artisan Partners' 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 |
| Artisan Partners vs. Federated Premier Municipal | Artisan Partners vs. Blackrock Muniyield | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. NXG NextGen Infrastructure |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |