Correlation Between Kite Realty and Site Centers
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Site Centers 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 Site Centers 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 Site Centers Corp, you can compare the effects of market volatilities on Kite Realty and Site Centers 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 Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Site Centers.
Diversification Opportunities for Kite Realty and Site Centers
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Site is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Site Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Site Centers Corp 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 Site Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Site Centers Corp has no effect on the direction of Kite Realty i.e., Kite Realty and Site Centers go up and down completely randomly.
Pair Corralation between Kite Realty and Site Centers
Considering the 90-day investment horizon Kite Realty Group is expected to under-perform the Site Centers. But the stock apears to be less risky and, when comparing its historical volatility, Kite Realty Group is 1.08 times less risky than Site Centers. The stock trades about -0.13 of its potential returns per unit of risk. The Site Centers Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,529 in Site Centers Corp on November 1, 2024 and sell it today you would lose (0.50) from holding Site Centers Corp or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Site Centers Corp
Performance |
| Timeline |
| Kite Realty Group |
| Site Centers Corp |
Kite Realty and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Site Centers
The main advantage of trading using opposite Kite Realty and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Site Centers 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 Site Centers will offset losses from the drop in Site Centers' 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 |
| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |