Correlation Between Kite Realty and Phillips Edison
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Phillips Edison 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 Phillips Edison 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 Phillips Edison Co, you can compare the effects of market volatilities on Kite Realty and Phillips Edison 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 Phillips Edison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Phillips Edison.
Diversification Opportunities for Kite Realty and Phillips Edison
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kite and Phillips is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Phillips Edison Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips Edison 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 Phillips Edison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips Edison has no effect on the direction of Kite Realty i.e., Kite Realty and Phillips Edison go up and down completely randomly.
Pair Corralation between Kite Realty and Phillips Edison
Considering the 90-day investment horizon Kite Realty is expected to generate 1.17 times less return on investment than Phillips Edison. In addition to that, Kite Realty is 1.29 times more volatile than Phillips Edison Co. It trades about 0.29 of its total potential returns per unit of risk. Phillips Edison Co is currently generating about 0.44 per unit of volatility. If you would invest 3,658 in Phillips Edison Co on August 28, 2024 and sell it today you would earn a total of 276.00 from holding Phillips Edison Co or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Phillips Edison Co
Performance |
| Timeline |
| Kite Realty Group |
| Phillips Edison |
Kite Realty and Phillips Edison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Phillips Edison
The main advantage of trading using opposite Kite Realty and Phillips Edison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Phillips Edison 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 Phillips Edison will offset losses from the drop in Phillips Edison'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 |
| Phillips Edison vs. Site Centers Corp | Phillips Edison vs. Retail Opportunity Investments | Phillips Edison vs. Urban Edge Properties | Phillips Edison vs. Netstreit Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |