Correlation Between Kite Realty and Zedge
Can any of the company-specific risk be diversified away by investing in both Kite Realty and Zedge 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 Zedge 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 Zedge Inc, you can compare the effects of market volatilities on Kite Realty and Zedge 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 Zedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Zedge.
Diversification Opportunities for Kite Realty and Zedge
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kite and Zedge is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and Zedge Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedge 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 Zedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedge Inc has no effect on the direction of Kite Realty i.e., Kite Realty and Zedge go up and down completely randomly.
Pair Corralation between Kite Realty and Zedge
Considering the 90-day investment horizon Kite Realty is expected to generate 1.85 times less return on investment than Zedge. But when comparing it to its historical volatility, Kite Realty Group is 3.3 times less risky than Zedge. It trades about 0.06 of its potential returns per unit of risk. Zedge Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 215.00 in Zedge Inc on August 31, 2024 and sell it today you would earn a total of 56.00 from holding Zedge Inc or generate 26.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Zedge Inc
Performance |
| Timeline |
| Kite Realty Group |
| Zedge Inc |
Kite Realty and Zedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Zedge
The main advantage of trading using opposite Kite Realty and Zedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, Zedge 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 Zedge will offset losses from the drop in Zedge'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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