Correlation Between Kite Realty and Daito Trust
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Daito Trust 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 Daito Trust 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 Daito Trust Construction, you can compare the effects of market volatilities on Kite Realty and Daito Trust 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 Daito Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Daito Trust.
Diversification Opportunities for Kite Realty and Daito Trust
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kite and Daito is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Daito Trust Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daito Trust Construction 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 Daito Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daito Trust Construction has no effect on the direction of Kite Realty i.e., Kite Realty and Daito Trust go up and down completely randomly.
Pair Corralation between Kite Realty and Daito Trust
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.41 times more return on investment than Daito Trust. However, Kite Realty Group is 2.44 times less risky than Daito Trust. It trades about 0.05 of its potential returns per unit of risk. Daito Trust Construction is currently generating about 0.02 per unit of risk. If you would invest 1,972 in Kite Realty Group on September 5, 2024 and sell it today you would earn a total of 718.00 from holding Kite Realty Group or generate 36.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.46% |
| Values | Daily Returns |
Kite Realty Group vs. Daito Trust Construction
Performance |
| Timeline |
| Kite Realty Group |
| Daito Trust Construction |
Kite Realty and Daito Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Daito Trust
The main advantage of trading using opposite Kite Realty and Daito Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Daito Trust 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 Daito Trust will offset losses from the drop in Daito Trust'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 |
| Daito Trust vs. Fernhill Beverage | Daito Trust vs. Anheuser Busch Inbev | Daito Trust vs. The Gap, | Daito Trust vs. Cardinal Health |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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