Correlation Between Kite Realty and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Pekin Life 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 Pekin Life 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 Pekin Life Insurance, you can compare the effects of market volatilities on Kite Realty and Pekin Life 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 Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Pekin Life.
Diversification Opportunities for Kite Realty and Pekin Life
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Pekin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life Insurance 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 Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of Kite Realty i.e., Kite Realty and Pekin Life go up and down completely randomly.
Pair Corralation between Kite Realty and Pekin Life
Considering the 90-day investment horizon Kite Realty Group is expected to generate 2.36 times more return on investment than Pekin Life. However, Kite Realty is 2.36 times more volatile than Pekin Life Insurance. It trades about 0.29 of its potential returns per unit of risk. Pekin Life Insurance is currently generating about 0.24 per unit of risk. If you would invest 2,582 in Kite Realty Group on August 28, 2024 and sell it today you would earn a total of 164.00 from holding Kite Realty Group or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Pekin Life Insurance
Performance |
| Timeline |
| Kite Realty Group |
| Pekin Life Insurance |
Kite Realty and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Pekin Life
The main advantage of trading using opposite Kite Realty and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life'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 |
| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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