Correlation Between Kite Realty and XCHG Limited
Can any of the company-specific risk be diversified away by investing in both Kite Realty and XCHG Limited 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 XCHG Limited 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 XCHG Limited American, you can compare the effects of market volatilities on Kite Realty and XCHG Limited 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 XCHG Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and XCHG Limited.
Diversification Opportunities for Kite Realty and XCHG Limited
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kite and XCHG is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and XCHG Limited American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCHG Limited American 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 XCHG Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCHG Limited American has no effect on the direction of Kite Realty i.e., Kite Realty and XCHG Limited go up and down completely randomly.
Pair Corralation between Kite Realty and XCHG Limited
Considering the 90-day investment horizon Kite Realty is expected to generate 171.56 times less return on investment than XCHG Limited. But when comparing it to its historical volatility, Kite Realty Group is 101.92 times less risky than XCHG Limited. It trades about 0.09 of its potential returns per unit of risk. XCHG Limited American is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.00 in XCHG Limited American on September 4, 2024 and sell it today you would earn a total of 1,699 from holding XCHG Limited American or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 24.7% |
| Values | Daily Returns |
Kite Realty Group vs. XCHG Limited American
Performance |
| Timeline |
| Kite Realty Group |
| XCHG Limited American |
Kite Realty and XCHG Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and XCHG Limited
The main advantage of trading using opposite Kite Realty and XCHG Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, XCHG Limited 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 XCHG Limited will offset losses from the drop in XCHG Limited'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 |
| XCHG Limited vs. Small Cap Premium | XCHG Limited vs. Lincoln Educational Services | XCHG Limited vs. PennantPark Floating Rate | XCHG Limited vs. Kite Realty Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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