Correlation Between Kite Realty and Wheeler Real
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
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kite and Wheeler is 0.2. 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 under-perform the Wheeler Real. But the stock apears to be less risky and, when comparing its historical volatility, Kite Realty Group is 2.98 times less risky than Wheeler Real. The stock trades about -0.13 of its potential returns per unit of risk. The Wheeler Real Estate is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Wheeler Real Estate on October 26, 2024 and sell it today you would earn a total of 115.00 from holding Wheeler Real Estate or generate 38.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Kite Realty Group vs. Wheeler Real Estate
Performance |
| Timeline |
| Kite Realty Group |
| Wheeler Real Estate |
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.| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty Trust |
| Wheeler Real vs. Wheeler Real Estate | Wheeler Real vs. Site Centers Corp | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Brixmor Property |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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