Correlation Between Kite Realty and Nomura Holdings
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Nomura 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 Nomura 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 Nomura Holdings ADR, you can compare the effects of market volatilities on Kite Realty and Nomura 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 Nomura Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Nomura Holdings.
Diversification Opportunities for Kite Realty and Nomura Holdings
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Nomura is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Nomura Holdings ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura Holdings ADR 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 Nomura Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Holdings ADR has no effect on the direction of Kite Realty i.e., Kite Realty and Nomura Holdings go up and down completely randomly.
Pair Corralation between Kite Realty and Nomura Holdings
Considering the 90-day investment horizon Kite Realty is expected to generate 2.65 times less return on investment than Nomura Holdings. But when comparing it to its historical volatility, Kite Realty Group is 1.77 times less risky than Nomura Holdings. It trades about 0.28 of its potential returns per unit of risk. Nomura Holdings ADR is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 517.00 in Nomura Holdings ADR on August 28, 2024 and sell it today you would earn a total of 91.00 from holding Nomura Holdings ADR or generate 17.6% 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. Nomura Holdings ADR
Performance |
| Timeline |
| Kite Realty Group |
| Nomura Holdings ADR |
Kite Realty and Nomura Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Nomura Holdings
The main advantage of trading using opposite Kite Realty and Nomura Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Nomura 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 Nomura Holdings will offset losses from the drop in Nomura 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 |
| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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