Correlation Between Kite Realty and Bayview Acquisition
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Bayview Acquisition 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 Bayview Acquisition 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 Bayview Acquisition Corp, you can compare the effects of market volatilities on Kite Realty and Bayview Acquisition 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 Bayview Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Bayview Acquisition.
Diversification Opportunities for Kite Realty and Bayview Acquisition
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kite and Bayview is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Bayview Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayview Acquisition Corp 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 Bayview Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayview Acquisition Corp has no effect on the direction of Kite Realty i.e., Kite Realty and Bayview Acquisition go up and down completely randomly.
Pair Corralation between Kite Realty and Bayview Acquisition
Considering the 90-day investment horizon Kite Realty Group is expected to generate 1.96 times more return on investment than Bayview Acquisition. However, Kite Realty is 1.96 times more volatile than Bayview Acquisition Corp. It trades about 0.12 of its potential returns per unit of risk. Bayview Acquisition Corp is currently generating about 0.08 per unit of risk. If you would invest 2,559 in Kite Realty Group on September 3, 2024 and sell it today you would earn a total of 198.00 from holding Kite Realty Group or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Bayview Acquisition Corp
Performance |
| Timeline |
| Kite Realty Group |
| Bayview Acquisition Corp |
Kite Realty and Bayview Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Bayview Acquisition
The main advantage of trading using opposite Kite Realty and Bayview Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Bayview Acquisition 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 Bayview Acquisition will offset losses from the drop in Bayview Acquisition'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 |
| Bayview Acquisition vs. Nasdaq Inc | Bayview Acquisition vs. Broadstone Net Lease | Bayview Acquisition vs. Kite Realty Group | Bayview Acquisition vs. Playtika Holding Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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