Correlation Between Kite Realty and Plaza Retail
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Plaza Retail 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 Plaza Retail 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 Plaza Retail REIT, you can compare the effects of market volatilities on Kite Realty and Plaza Retail 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 Plaza Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Plaza Retail.
Diversification Opportunities for Kite Realty and Plaza Retail
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kite and Plaza is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Plaza Retail REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Retail REIT 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 Plaza Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Retail REIT has no effect on the direction of Kite Realty i.e., Kite Realty and Plaza Retail go up and down completely randomly.
Pair Corralation between Kite Realty and Plaza Retail
Considering the 90-day investment horizon Kite Realty is expected to generate 1.11 times less return on investment than Plaza Retail. But when comparing it to its historical volatility, Kite Realty Group is 2.86 times less risky than Plaza Retail. It trades about 0.05 of its potential returns per unit of risk. Plaza Retail REIT is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Plaza Retail REIT on August 24, 2024 and sell it today you would lose (14.00) from holding Plaza Retail REIT or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.56% |
| Values | Daily Returns |
Kite Realty Group vs. Plaza Retail REIT
Performance |
| Timeline |
| Kite Realty Group |
| Plaza Retail REIT |
Kite Realty and Plaza Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Plaza Retail
The main advantage of trading using opposite Kite Realty and Plaza Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Plaza Retail 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 Plaza Retail will offset losses from the drop in Plaza Retail'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 |
| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery REIT |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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