Correlation Between Kite Realty and SunOpta
Can any of the company-specific risk be diversified away by investing in both Kite Realty and SunOpta 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 SunOpta 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 SunOpta, you can compare the effects of market volatilities on Kite Realty and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and SunOpta.
Diversification Opportunities for Kite Realty and SunOpta
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kite and SunOpta is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Kite Realty i.e., Kite Realty and SunOpta go up and down completely randomly.
Pair Corralation between Kite Realty and SunOpta
Considering the 90-day investment horizon Kite Realty is expected to generate 4.38 times less return on investment than SunOpta. But when comparing it to its historical volatility, Kite Realty Group is 3.24 times less risky than SunOpta. It trades about 0.31 of its potential returns per unit of risk. SunOpta is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 586.00 in SunOpta on August 31, 2024 and sell it today you would earn a total of 195.00 from holding SunOpta or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. SunOpta
Performance |
| Timeline |
| Kite Realty Group |
| SunOpta |
Kite Realty and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and SunOpta
The main advantage of trading using opposite Kite Realty and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta'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 |
| SunOpta vs. Central Garden Pet | SunOpta vs. Bridgford Foods | SunOpta vs. Lancaster Colony | SunOpta vs. HUMANA INC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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