Correlation Between Kite Realty and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Maiden Holdings 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 Maiden Holdings 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 Maiden Holdings, you can compare the effects of market volatilities on Kite Realty and Maiden Holdings 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 Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Maiden Holdings.
Diversification Opportunities for Kite Realty and Maiden Holdings
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Maiden is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden 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 Maiden Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maiden Holdings has no effect on the direction of Kite Realty i.e., Kite Realty and Maiden Holdings go up and down completely randomly.
Pair Corralation between Kite Realty and Maiden Holdings
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.58 times more return on investment than Maiden Holdings. However, Kite Realty Group is 1.72 times less risky than Maiden Holdings. It trades about 0.05 of its potential returns per unit of risk. Maiden Holdings is currently generating about 0.03 per unit of risk. If you would invest 2,006 in Kite Realty Group on August 28, 2024 and sell it today you would earn a total of 774.00 from holding Kite Realty Group or generate 38.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
Kite Realty Group vs. Maiden Holdings
Performance |
| Timeline |
| Kite Realty Group |
| Maiden Holdings |
Kite Realty and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Maiden Holdings
The main advantage of trading using opposite Kite Realty and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Maiden Holdings 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 Maiden Holdings will offset losses from the drop in Maiden Holdings' 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 |
| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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