Correlation Between Kite Realty and Better Home
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Better Home 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 Better Home 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 Better Home Finance, you can compare the effects of market volatilities on Kite Realty and Better Home 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 Better Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Better Home.
Diversification Opportunities for Kite Realty and Better Home
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kite and Better is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Better Home Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Better Home Finance 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 Better Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Better Home Finance has no effect on the direction of Kite Realty i.e., Kite Realty and Better Home go up and down completely randomly.
Pair Corralation between Kite Realty and Better Home
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.19 times more return on investment than Better Home. However, Kite Realty Group is 5.38 times less risky than Better Home. It trades about 0.06 of its potential returns per unit of risk. Better Home Finance is currently generating about -0.09 per unit of risk. If you would invest 2,040 in Kite Realty Group on September 12, 2024 and sell it today you would earn a total of 611.00 from holding Kite Realty Group or generate 29.95% 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. Better Home Finance
Performance |
| Timeline |
| Kite Realty Group |
| Better Home Finance |
Kite Realty and Better Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Better Home
The main advantage of trading using opposite Kite Realty and Better Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Better Home 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 Better Home will offset losses from the drop in Better Home'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 |
| Better Home vs. Scholastic | Better Home vs. Skillful Craftsman Education | Better Home vs. Tradeweb Markets | Better Home vs. Kite Realty Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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