Correlation Between Kite Realty and Rumble
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Rumble 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 Rumble 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 Rumble Inc, you can compare the effects of market volatilities on Kite Realty and Rumble 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 Rumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Rumble.
Diversification Opportunities for Kite Realty and Rumble
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Rumble is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc 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 Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Kite Realty i.e., Kite Realty and Rumble go up and down completely randomly.
Pair Corralation between Kite Realty and Rumble
Considering the 90-day investment horizon Kite Realty is expected to generate 2.59 times less return on investment than Rumble. But when comparing it to its historical volatility, Kite Realty Group is 6.39 times less risky than Rumble. It trades about 0.29 of its potential returns per unit of risk. Rumble Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 648.00 in Rumble Inc on August 28, 2024 and sell it today you would earn a total of 83.00 from holding Rumble Inc or generate 12.81% 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. Rumble Inc
Performance |
| Timeline |
| Kite Realty Group |
| Rumble Inc |
Kite Realty and Rumble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Rumble
The main advantage of trading using opposite Kite Realty and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Rumble 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 Rumble will offset losses from the drop in Rumble'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 |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |