Correlation Between Kite Realty and Monster Beverage
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Monster Beverage 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 Monster Beverage 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 Monster Beverage Corp, you can compare the effects of market volatilities on Kite Realty and Monster Beverage 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 Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Monster Beverage.
Diversification Opportunities for Kite Realty and Monster Beverage
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kite and Monster is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage 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 Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of Kite Realty i.e., Kite Realty and Monster Beverage go up and down completely randomly.
Pair Corralation between Kite Realty and Monster Beverage
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.49 times more return on investment than Monster Beverage. However, Kite Realty Group is 2.06 times less risky than Monster Beverage. It trades about 0.35 of its potential returns per unit of risk. Monster Beverage Corp is currently generating about 0.12 per unit of risk. If you would invest 2,567 in Kite Realty Group on September 1, 2024 and sell it today you would earn a total of 190.00 from holding Kite Realty Group or generate 7.4% 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. Monster Beverage Corp
Performance |
| Timeline |
| Kite Realty Group |
| Monster Beverage Corp |
Kite Realty and Monster Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Monster Beverage
The main advantage of trading using opposite Kite Realty and Monster Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Monster Beverage 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 Monster Beverage will offset losses from the drop in Monster Beverage'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 |
| Monster Beverage vs. Coca Cola Femsa SAB | Monster Beverage vs. Embotelladora Andina SA | Monster Beverage vs. National Beverage Corp | Monster Beverage vs. Embotelladora Andina SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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