Correlation Between Kite Realty and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Kite Realty and PennantPark Floating 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 PennantPark Floating 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 PennantPark Floating Rate, you can compare the effects of market volatilities on Kite Realty and PennantPark Floating 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 PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and PennantPark Floating.
Diversification Opportunities for Kite Realty and PennantPark Floating
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kite and PennantPark is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate 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 PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Kite Realty i.e., Kite Realty and PennantPark Floating go up and down completely randomly.
Pair Corralation between Kite Realty and PennantPark Floating
Considering the 90-day investment horizon Kite Realty Group is expected to generate 1.12 times more return on investment than PennantPark Floating. However, Kite Realty is 1.12 times more volatile than PennantPark Floating Rate. It trades about 0.05 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.03 per unit of risk. If you would invest 2,027 in Kite Realty Group on August 25, 2024 and sell it today you would earn a total of 713.00 from holding Kite Realty Group or generate 35.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. PennantPark Floating Rate
Performance |
| Timeline |
| Kite Realty Group |
| PennantPark Floating Rate |
Kite Realty and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and PennantPark Floating
The main advantage of trading using opposite Kite Realty and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Kite Realty vs. Site Centers Corp | Kite Realty vs. Inventrust Properties Corp | Kite Realty vs. Retail Opportunity Investments | Kite Realty vs. Netstreit Corp |
| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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