Correlation Between Kite Realty and Wheeler Real

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Can any of the company-specific risk be diversified away by investing in both Kite Realty and Wheeler Real 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 Wheeler Real 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 Wheeler Real Estate, you can compare the effects of market volatilities on Kite Realty and Wheeler Real 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 Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Wheeler Real.

Diversification Opportunities for Kite Realty and Wheeler Real

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Kite and Wheeler is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate 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 Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Kite Realty i.e., Kite Realty and Wheeler Real go up and down completely randomly.

Pair Corralation between Kite Realty and Wheeler Real

Considering the 90-day investment horizon Kite Realty Group is expected to generate 0.22 times more return on investment than Wheeler Real. However, Kite Realty Group is 4.46 times less risky than Wheeler Real. It trades about 0.21 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.82 per unit of risk. If you would invest  2,606  in Kite Realty Group on August 25, 2024 and sell it today you would earn a total of  134.00  from holding Kite Realty Group or generate 5.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kite Realty Group  vs.  Wheeler Real Estate

 Performance 
       Timeline  
Kite Realty Group 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Kite Realty Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Kite Realty may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Wheeler Real Estate 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Wheeler Real Estate are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting essential indicators, Wheeler Real reported solid returns over the last few months and may actually be approaching a breakup point.

Kite Realty and Wheeler Real Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kite Realty and Wheeler Real

The main advantage of trading using opposite Kite Realty and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Wheeler Real 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 Wheeler Real will offset losses from the drop in Wheeler Real's long position.
The idea behind Kite Realty Group and Wheeler Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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