Correlation Between Kite Realty and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Slate Grocery 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 Slate Grocery 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 Slate Grocery REIT, you can compare the effects of market volatilities on Kite Realty and Slate Grocery 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 Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Slate Grocery.
Diversification Opportunities for Kite Realty and Slate Grocery
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Slate is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT 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 Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Kite Realty i.e., Kite Realty and Slate Grocery go up and down completely randomly.
Pair Corralation between Kite Realty and Slate Grocery
Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.98 times more return on investment than Slate Grocery. However, Kite Realty Group is 1.02 times less risky than Slate Grocery. It trades about 0.05 of its potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.02 per unit of risk. If you would invest 2,006 in Kite Realty Group on August 28, 2024 and sell it today you would earn a total of 740.00 from holding Kite Realty Group or generate 36.89% 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. Slate Grocery REIT
Performance |
| Timeline |
| Kite Realty Group |
| Slate Grocery REIT |
Kite Realty and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Slate Grocery
The main advantage of trading using opposite Kite Realty and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery'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 |
| Slate Grocery vs. Smart REIT | Slate Grocery vs. Phillips Edison Co | Slate Grocery vs. Simon Property Group | Slate Grocery vs. Inventrust Properties Corp |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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