Correlation Between Kite Realty and SL Green
Can any of the company-specific risk be diversified away by investing in both Kite Realty and SL Green 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 SL Green 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 SL Green Realty, you can compare the effects of market volatilities on Kite Realty and SL Green 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 SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and SL Green.
Diversification Opportunities for Kite Realty and SL Green
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kite and SLG is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and SL Green Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SL Green Realty 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 SL Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SL Green Realty has no effect on the direction of Kite Realty i.e., Kite Realty and SL Green go up and down completely randomly.
Pair Corralation between Kite Realty and SL Green
Considering the 90-day investment horizon Kite Realty Group is expected to under-perform the SL Green. But the stock apears to be less risky and, when comparing its historical volatility, Kite Realty Group is 2.04 times less risky than SL Green. The stock trades about -0.21 of its potential returns per unit of risk. The SL Green Realty is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 7,610 in SL Green Realty on September 18, 2024 and sell it today you would lose (199.00) from holding SL Green Realty or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. SL Green Realty
Performance |
| Timeline |
| Kite Realty Group |
| SL Green Realty |
Kite Realty and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and SL Green
The main advantage of trading using opposite Kite Realty and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, SL Green 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 SL Green will offset losses from the drop in SL Green's long position.| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Acadia Realty Trust | Kite Realty vs. Rithm Property 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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