Correlation Between Kite Realty and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Canlan Ice 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 Canlan Ice 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 Canlan Ice Sports, you can compare the effects of market volatilities on Kite Realty and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Canlan Ice.
Diversification Opportunities for Kite Realty and Canlan Ice
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kite and Canlan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Kite Realty i.e., Kite Realty and Canlan Ice go up and down completely randomly.
Pair Corralation between Kite Realty and Canlan Ice
Considering the 90-day investment horizon Kite Realty Group is expected to generate 11.6 times more return on investment than Canlan Ice. However, Kite Realty is 11.6 times more volatile than Canlan Ice Sports. It trades about 0.08 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.14 per unit of risk. If you would invest 2,176 in Kite Realty Group on August 29, 2024 and sell it today you would earn a total of 604.00 from holding Kite Realty Group or generate 27.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kite Realty Group vs. Canlan Ice Sports
Performance |
| Timeline |
| Kite Realty Group |
| Canlan Ice Sports |
Kite Realty and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Canlan Ice
The main advantage of trading using opposite Kite Realty and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice'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 |
| Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. Carnival Plc ADS | Canlan Ice vs. BANDAI NAMCO Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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