Correlation Between Kite Realty and Simon Property
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Simon Property 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 Simon Property 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 Simon Property Group, you can compare the effects of market volatilities on Kite Realty and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Simon Property.
Diversification Opportunities for Kite Realty and Simon Property
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kite and Simon is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Kite Realty i.e., Kite Realty and Simon Property go up and down completely randomly.
Pair Corralation between Kite Realty and Simon Property
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.9 times more return on investment than Simon Property. However, Kite Realty Group is 1.12 times less risky than Simon Property. It trades about 0.12 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.04 per unit of risk. If you would invest 2,069 in Kite Realty Group on August 28, 2024 and sell it today you would earn a total of 677.00 from holding Kite Realty Group or generate 32.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Simon Property Group
Performance |
| Timeline |
| Kite Realty Group |
| Simon Property Group |
Kite Realty and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Simon Property
The main advantage of trading using opposite Kite Realty and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property'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 |
| Simon Property vs. Kimco Realty | Simon Property vs. Saul Centers | Simon Property vs. Saul Centers | Simon Property vs. Urban Edge Properties |
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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