Correlation Between Kite Realty and ChampionX
Can any of the company-specific risk be diversified away by investing in both Kite Realty and ChampionX 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 ChampionX 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 ChampionX, you can compare the effects of market volatilities on Kite Realty and ChampionX 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 ChampionX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and ChampionX.
Diversification Opportunities for Kite Realty and ChampionX
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kite and ChampionX is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and ChampionX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChampionX 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 ChampionX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChampionX has no effect on the direction of Kite Realty i.e., Kite Realty and ChampionX go up and down completely randomly.
Pair Corralation between Kite Realty and ChampionX
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.71 times more return on investment than ChampionX. However, Kite Realty Group is 1.41 times less risky than ChampionX. It trades about 0.05 of its potential returns per unit of risk. ChampionX is currently generating about 0.02 per unit of risk. If you would invest 2,023 in Kite Realty Group on September 4, 2024 and sell it today you would earn a total of 690.00 from holding Kite Realty Group or generate 34.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. ChampionX
Performance |
| Timeline |
| Kite Realty Group |
| ChampionX |
Kite Realty and ChampionX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and ChampionX
The main advantage of trading using opposite Kite Realty and ChampionX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, ChampionX 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 ChampionX will offset losses from the drop in ChampionX'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 |
| ChampionX vs. Oil States International | ChampionX vs. Geospace Technologies | ChampionX vs. Weatherford International PLC | ChampionX vs. Enerflex |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |