Correlation Between Kite Realty and National Vision
Can any of the company-specific risk be diversified away by investing in both Kite Realty and National Vision 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 National Vision 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 National Vision Holdings, you can compare the effects of market volatilities on Kite Realty and National Vision 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 National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and National Vision.
Diversification Opportunities for Kite Realty and National Vision
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kite and National is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision Holdings 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 National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of Kite Realty i.e., Kite Realty and National Vision go up and down completely randomly.
Pair Corralation between Kite Realty and National Vision
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.45 times more return on investment than National Vision. However, Kite Realty Group is 2.24 times less risky than National Vision. It trades about 0.07 of its potential returns per unit of risk. National Vision Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,898 in Kite Realty Group on August 26, 2024 and sell it today you would earn a total of 842.00 from holding Kite Realty Group or generate 44.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. National Vision Holdings
Performance |
| Timeline |
| Kite Realty Group |
| National Vision Holdings |
Kite Realty and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and National Vision
The main advantage of trading using opposite Kite Realty and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, National Vision 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 National Vision will offset losses from the drop in National Vision's long position.| Kite Realty vs. Site Centers Corp | Kite Realty vs. Inventrust Properties Corp | Kite Realty vs. Retail Opportunity Investments | Kite Realty vs. Netstreit Corp |
| National Vision vs. Oriental Culture Holding | National Vision vs. Hour Loop | National Vision vs. Qurate Retail Series | National Vision vs. Emerge Commerce |
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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