Correlation Between Kite Realty and Tesla
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Tesla 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 Tesla 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 Tesla Inc, you can compare the effects of market volatilities on Kite Realty and Tesla 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 Tesla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Tesla.
Diversification Opportunities for Kite Realty and Tesla
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kite and Tesla is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Tesla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesla Inc 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 Tesla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesla Inc has no effect on the direction of Kite Realty i.e., Kite Realty and Tesla go up and down completely randomly.
Pair Corralation between Kite Realty and Tesla
Considering the 90-day investment horizon Kite Realty is expected to generate 3.09 times less return on investment than Tesla. But when comparing it to its historical volatility, Kite Realty Group is 2.4 times less risky than Tesla. It trades about 0.06 of its potential returns per unit of risk. Tesla Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 11,977 in Tesla Inc on August 31, 2024 and sell it today you would earn a total of 22,539 from holding Tesla Inc or generate 188.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kite Realty Group vs. Tesla Inc
Performance |
| Timeline |
| Kite Realty Group |
| Tesla Inc |
Kite Realty and Tesla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Tesla
The main advantage of trading using opposite Kite Realty and Tesla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Tesla 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 Tesla will offset losses from the drop in Tesla'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 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| 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 | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |