Correlation Between Kite Realty and Mind Technology
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Mind Technology 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 Mind Technology 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 Mind Technology, you can compare the effects of market volatilities on Kite Realty and Mind Technology 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 Mind Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Mind Technology.
Diversification Opportunities for Kite Realty and Mind Technology
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Mind is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Mind Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Technology 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 Mind Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Technology has no effect on the direction of Kite Realty i.e., Kite Realty and Mind Technology go up and down completely randomly.
Pair Corralation between Kite Realty and Mind Technology
Considering the 90-day investment horizon Kite Realty is expected to generate 2.81 times less return on investment than Mind Technology. But when comparing it to its historical volatility, Kite Realty Group is 2.23 times less risky than Mind Technology. It trades about 0.08 of its potential returns per unit of risk. Mind Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 361.00 in Mind Technology on September 5, 2024 and sell it today you would earn a total of 16.00 from holding Mind Technology or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Mind Technology
Performance |
| Timeline |
| Kite Realty Group |
| Mind Technology |
Kite Realty and Mind Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Mind Technology
The main advantage of trading using opposite Kite Realty and Mind Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Mind Technology 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 Mind Technology will offset losses from the drop in Mind Technology'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 |
| Mind Technology vs. Spectris plc | Mind Technology vs. Electro Sensors | Mind Technology vs. Sono Tek Corp | Mind Technology vs. Vishay Precision 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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