Correlation Between Kite Realty and EastGroup Properties
Can any of the company-specific risk be diversified away by investing in both Kite Realty and EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties, you can compare the effects of market volatilities on Kite Realty and EastGroup Properties 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 EastGroup Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and EastGroup Properties.
Diversification Opportunities for Kite Realty and EastGroup Properties
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kite and EastGroup is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and EastGroup Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EastGroup Properties 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 EastGroup Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EastGroup Properties has no effect on the direction of Kite Realty i.e., Kite Realty and EastGroup Properties go up and down completely randomly.
Pair Corralation between Kite Realty and EastGroup Properties
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.94 times more return on investment than EastGroup Properties. However, Kite Realty Group is 1.06 times less risky than EastGroup Properties. It trades about 0.34 of its potential returns per unit of risk. EastGroup Properties is currently generating about 0.0 per unit of risk. If you would invest 2,574 in Kite Realty Group on August 30, 2024 and sell it today you would earn a total of 206.00 from holding Kite Realty Group or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. EastGroup Properties
Performance |
| Timeline |
| Kite Realty Group |
| EastGroup Properties |
Kite Realty and EastGroup Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and EastGroup Properties
The main advantage of trading using opposite Kite Realty and EastGroup Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, EastGroup Properties 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 EastGroup Properties will offset losses from the drop in EastGroup Properties' long position.| Kite Realty vs. Saul Centers | Kite Realty vs. Site Centers Corp | Kite Realty vs. Acadia Realty Trust | Kite Realty vs. Retail Opportunity Investments |
| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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