Correlation Between Kite Realty and Universal Display
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Universal Display 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 Universal Display 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 Universal Display, you can compare the effects of market volatilities on Kite Realty and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Universal Display.
Diversification Opportunities for Kite Realty and Universal Display
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kite and Universal is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of Kite Realty i.e., Kite Realty and Universal Display go up and down completely randomly.
Pair Corralation between Kite Realty and Universal Display
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.49 times more return on investment than Universal Display. However, Kite Realty Group is 2.05 times less risky than Universal Display. It trades about -0.18 of its potential returns per unit of risk. Universal Display is currently generating about -0.21 per unit of risk. If you would invest 2,745 in Kite Realty Group on September 12, 2024 and sell it today you would lose (94.00) from holding Kite Realty Group or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Universal Display
Performance |
| Timeline |
| Kite Realty Group |
| Universal Display |
Kite Realty and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Universal Display
The main advantage of trading using opposite Kite Realty and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display'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 |
| Universal Display vs. Plexus Corp | Universal Display vs. Methode Electronics | Universal Display vs. Benchmark Electronics | Universal Display vs. Bel Fuse A |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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