Correlation Between Kite Realty and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Fidus Investment 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 Fidus Investment 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 Fidus Investment Corp, you can compare the effects of market volatilities on Kite Realty and Fidus Investment 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 Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Fidus Investment.
Diversification Opportunities for Kite Realty and Fidus Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kite and Fidus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Fidus Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidus Investment Corp 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 Fidus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidus Investment Corp has no effect on the direction of Kite Realty i.e., Kite Realty and Fidus Investment go up and down completely randomly.
Pair Corralation between Kite Realty and Fidus Investment
Considering the 90-day investment horizon Kite Realty is expected to generate 1.17 times less return on investment than Fidus Investment. In addition to that, Kite Realty is 1.24 times more volatile than Fidus Investment Corp. It trades about 0.31 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.45 per unit of volatility. If you would invest 1,948 in Fidus Investment Corp on August 31, 2024 and sell it today you would earn a total of 160.00 from holding Fidus Investment Corp or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Fidus Investment Corp
Performance |
| Timeline |
| Kite Realty Group |
| Fidus Investment Corp |
Kite Realty and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Fidus Investment
The main advantage of trading using opposite Kite Realty and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Fidus Investment 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 Fidus Investment will offset losses from the drop in Fidus Investment'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 |
| Fidus Investment vs. Ares Capital | Fidus Investment vs. Hercules Capital | Fidus Investment vs. Main Street Capital |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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