Correlation Between Kite Realty and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Kite Realty and FactSet Research 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 FactSet Research 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 FactSet Research Systems, you can compare the effects of market volatilities on Kite Realty and FactSet Research 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 FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and FactSet Research.
Diversification Opportunities for Kite Realty and FactSet Research
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kite and FactSet is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems 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 FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Kite Realty i.e., Kite Realty and FactSet Research go up and down completely randomly.
Pair Corralation between Kite Realty and FactSet Research
Considering the 90-day investment horizon Kite Realty is expected to generate 1.09 times less return on investment than FactSet Research. But when comparing it to its historical volatility, Kite Realty Group is 1.16 times less risky than FactSet Research. It trades about 0.29 of its potential returns per unit of risk. FactSet Research Systems is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 45,929 in FactSet Research Systems on August 28, 2024 and sell it today you would earn a total of 3,176 from holding FactSet Research Systems or generate 6.92% 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. FactSet Research Systems
Performance |
| Timeline |
| Kite Realty Group |
| FactSet Research Systems |
Kite Realty and FactSet Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and FactSet Research
The main advantage of trading using opposite Kite Realty and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research'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 |
| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Nasdaq Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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