Correlation Between Kite Realty and EPR Properties
Can any of the company-specific risk be diversified away by investing in both Kite Realty and EPR 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 EPR 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 EPR Properties, you can compare the effects of market volatilities on Kite Realty and EPR 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 EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and EPR Properties.
Diversification Opportunities for Kite Realty and EPR Properties
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kite and EPR is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and EPR Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR 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 EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties has no effect on the direction of Kite Realty i.e., Kite Realty and EPR Properties go up and down completely randomly.
Pair Corralation between Kite Realty and EPR Properties
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.77 times more return on investment than EPR Properties. However, Kite Realty Group is 1.29 times less risky than EPR Properties. It trades about 0.31 of its potential returns per unit of risk. EPR Properties is currently generating about -0.11 per unit of risk. If you would invest 2,604 in Kite Realty Group on August 31, 2024 and sell it today you would earn a total of 181.00 from holding Kite Realty Group or generate 6.95% 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. EPR Properties
Performance |
| Timeline |
| Kite Realty Group |
| EPR Properties |
Kite Realty and EPR Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and EPR Properties
The main advantage of trading using opposite Kite Realty and EPR Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, EPR 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 EPR Properties will offset losses from the drop in EPR Properties' 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 |
| EPR Properties vs. Equinix | EPR Properties vs. Crown Castle | EPR Properties vs. American Tower Corp | EPR Properties vs. Iron Mountain Incorporated |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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