Correlation Between Kite Realty and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Oatly Group 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 Oatly Group 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 Oatly Group AB, you can compare the effects of market volatilities on Kite Realty and Oatly Group 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 Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Oatly Group.
Diversification Opportunities for Kite Realty and Oatly Group
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kite and Oatly is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Oatly Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oatly Group AB 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 Oatly Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oatly Group AB has no effect on the direction of Kite Realty i.e., Kite Realty and Oatly Group go up and down completely randomly.
Pair Corralation between Kite Realty and Oatly Group
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.3 times more return on investment than Oatly Group. However, Kite Realty Group is 3.32 times less risky than Oatly Group. It trades about 0.18 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.09 per unit of risk. If you would invest 2,059 in Kite Realty Group on September 3, 2024 and sell it today you would earn a total of 698.00 from holding Kite Realty Group or generate 33.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Oatly Group AB
Performance |
| Timeline |
| Kite Realty Group |
| Oatly Group AB |
Kite Realty and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Oatly Group
The main advantage of trading using opposite Kite Realty and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Oatly Group 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 Oatly Group will offset losses from the drop in Oatly Group'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 |
| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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