Correlation Between Kite Realty and Compania Cervecerias
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Compania Cervecerias 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 Compania Cervecerias 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 Compania Cervecerias Unidas, you can compare the effects of market volatilities on Kite Realty and Compania Cervecerias 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 Compania Cervecerias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Compania Cervecerias.
Diversification Opportunities for Kite Realty and Compania Cervecerias
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kite and Compania is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Compania Cervecerias Unidas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Cervecerias 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 Compania Cervecerias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Cervecerias has no effect on the direction of Kite Realty i.e., Kite Realty and Compania Cervecerias go up and down completely randomly.
Pair Corralation between Kite Realty and Compania Cervecerias
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.88 times more return on investment than Compania Cervecerias. However, Kite Realty Group is 1.13 times less risky than Compania Cervecerias. It trades about 0.05 of its potential returns per unit of risk. Compania Cervecerias Unidas is currently generating about -0.02 per unit of risk. If you would invest 2,000 in Kite Realty Group on September 1, 2024 and sell it today you would earn a total of 757.00 from holding Kite Realty Group or generate 37.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Compania Cervecerias Unidas
Performance |
| Timeline |
| Kite Realty Group |
| Compania Cervecerias |
Kite Realty and Compania Cervecerias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Compania Cervecerias
The main advantage of trading using opposite Kite Realty and Compania Cervecerias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Compania Cervecerias 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 Compania Cervecerias will offset losses from the drop in Compania Cervecerias' 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 |
| Compania Cervecerias vs. Boston Beer | Compania Cervecerias vs. Molson Coors Beverage | Compania Cervecerias vs. Ambev SA ADR | Compania Cervecerias vs. Molson Coors Brewing |
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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