Correlation Between Kite Realty and Western Acquisition
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Western Acquisition 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 Western Acquisition 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 Western Acquisition Ventures, you can compare the effects of market volatilities on Kite Realty and Western Acquisition 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 Western Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Western Acquisition.
Diversification Opportunities for Kite Realty and Western Acquisition
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kite and Western is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Western Acquisition Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Acquisition 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 Western Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Acquisition has no effect on the direction of Kite Realty i.e., Kite Realty and Western Acquisition go up and down completely randomly.
Pair Corralation between Kite Realty and Western Acquisition
Considering the 90-day investment horizon Kite Realty Group is expected to generate 1.13 times more return on investment than Western Acquisition. However, Kite Realty is 1.13 times more volatile than Western Acquisition Ventures. It trades about 0.16 of its potential returns per unit of risk. Western Acquisition Ventures is currently generating about -0.03 per unit of risk. If you would invest 2,150 in Kite Realty Group on September 3, 2024 and sell it today you would earn a total of 563.00 from holding Kite Realty Group or generate 26.19% 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. Western Acquisition Ventures
Performance |
| Timeline |
| Kite Realty Group |
| Western Acquisition |
Kite Realty and Western Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Western Acquisition
The main advantage of trading using opposite Kite Realty and Western Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Western Acquisition 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 Western Acquisition will offset losses from the drop in Western Acquisition's long position.| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Inventrust Properties Corp |
| Western Acquisition vs. Alpha One | Western Acquisition vs. Manaris Corp | Western Acquisition vs. SCOR PK | Western Acquisition vs. Aquagold International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |