Correlation Between Kite Realty and Saul Centers
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Saul Centers 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 Saul Centers 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 Saul Centers, you can compare the effects of market volatilities on Kite Realty and Saul Centers 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 Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Saul Centers.
Diversification Opportunities for Kite Realty and Saul Centers
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kite and Saul is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers 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 Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Kite Realty i.e., Kite Realty and Saul Centers go up and down completely randomly.
Pair Corralation between Kite Realty and Saul Centers
Considering the 90-day investment horizon Kite Realty Group is expected to under-perform the Saul Centers. In addition to that, Kite Realty is 1.35 times more volatile than Saul Centers. It trades about -0.13 of its total potential returns per unit of risk. Saul Centers is currently generating about -0.15 per unit of volatility. If you would invest 3,819 in Saul Centers on November 1, 2024 and sell it today you would lose (142.00) from holding Saul Centers or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Saul Centers
Performance |
| Timeline |
| Kite Realty Group |
| Saul Centers |
Kite Realty and Saul Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Saul Centers
The main advantage of trading using opposite Kite Realty and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Saul Centers 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 Saul Centers will offset losses from the drop in Saul Centers' 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 |
| Saul Centers vs. Urban Edge Properties | Saul Centers vs. Rithm Property Trust | Saul Centers vs. Site Centers Corp | Saul Centers 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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