Correlation Between Kite Realty and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Grupo Simec 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 Grupo Simec 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 Grupo Simec SAB, you can compare the effects of market volatilities on Kite Realty and Grupo Simec 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 Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Grupo Simec.
Diversification Opportunities for Kite Realty and Grupo Simec
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Grupo is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB 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 Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of Kite Realty i.e., Kite Realty and Grupo Simec go up and down completely randomly.
Pair Corralation between Kite Realty and Grupo Simec
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.44 times more return on investment than Grupo Simec. However, Kite Realty Group is 2.25 times less risky than Grupo Simec. It trades about 0.03 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.01 per unit of risk. If you would invest 1,939 in Kite Realty Group on November 28, 2024 and sell it today you would earn a total of 296.00 from holding Kite Realty Group or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.02% |
| Values | Daily Returns |
Kite Realty Group vs. Grupo Simec SAB
Performance |
| Timeline |
| Kite Realty Group |
| Grupo Simec SAB |
Kite Realty and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Grupo Simec
The main advantage of trading using opposite Kite Realty and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec'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 |
| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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