Correlation Between Kite Realty and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Kimco Realty 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 Kimco Realty 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 Kimco Realty, you can compare the effects of market volatilities on Kite Realty and Kimco Realty 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 Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Kimco Realty.
Diversification Opportunities for Kite Realty and Kimco Realty
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kite and Kimco is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty 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 Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Kite Realty i.e., Kite Realty and Kimco Realty go up and down completely randomly.
Pair Corralation between Kite Realty and Kimco Realty
Considering the 90-day investment horizon Kite Realty Group is expected to generate 1.14 times more return on investment than Kimco Realty. However, Kite Realty is 1.14 times more volatile than Kimco Realty. It trades about 0.33 of its potential returns per unit of risk. Kimco Realty is currently generating about -0.13 per unit of risk. If you would invest 2,582 in Kite Realty Group on August 29, 2024 and sell it today you would earn a total of 203.00 from holding Kite Realty Group or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Kimco Realty
Performance |
| Timeline |
| Kite Realty Group |
| Kimco Realty |
Kite Realty and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Kimco Realty
The main advantage of trading using opposite Kite Realty and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Kimco Realty 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 Kimco Realty will offset losses from the drop in Kimco Realty'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 |
| Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Saul Centers | Kimco Realty vs. Kimco Realty | Kimco Realty vs. Simon Property Group |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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