Correlation Between Kite Realty and Four Leaf
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Four Leaf 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 Four Leaf 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 Four Leaf Acquisition, you can compare the effects of market volatilities on Kite Realty and Four Leaf 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 Four Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Four Leaf.
Diversification Opportunities for Kite Realty and Four Leaf
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kite and Four is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Four Leaf Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Leaf Acquisition 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 Four Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Leaf Acquisition has no effect on the direction of Kite Realty i.e., Kite Realty and Four Leaf go up and down completely randomly.
Pair Corralation between Kite Realty and Four Leaf
Considering the 90-day investment horizon Kite Realty Group is expected to generate 5.33 times more return on investment than Four Leaf. However, Kite Realty is 5.33 times more volatile than Four Leaf Acquisition. It trades about 0.24 of its potential returns per unit of risk. Four Leaf Acquisition is currently generating about 0.0 per unit of risk. If you would invest 2,651 in Kite Realty Group on September 3, 2024 and sell it today you would earn a total of 106.00 from holding Kite Realty Group or generate 4.0% 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. Four Leaf Acquisition
Performance |
| Timeline |
| Kite Realty Group |
| Four Leaf Acquisition |
Kite Realty and Four Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Four Leaf
The main advantage of trading using opposite Kite Realty and Four Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Four Leaf 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 Four Leaf will offset losses from the drop in Four Leaf'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 |
| Four Leaf vs. Lifevantage | Four Leaf vs. Tootsie Roll Industries | Four Leaf vs. Where Food Comes | Four Leaf vs. SunOpta |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |