Correlation Between Aeye and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Aeye and Kite Realty 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 Aeye and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and Kite Realty Group, you can compare the effects of market volatilities on Aeye and Kite Realty 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 Aeye with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and Kite Realty.
Diversification Opportunities for Aeye and Kite Realty
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aeye and Kite is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group and Aeye 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 Aeye Inc are associated (or correlated) with Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Aeye i.e., Aeye and Kite Realty go up and down completely randomly.
Pair Corralation between Aeye and Kite Realty
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the Kite Realty. In addition to that, Aeye is 7.58 times more volatile than Kite Realty Group. It trades about 0.0 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.06 per unit of volatility. If you would invest 2,127 in Kite Realty Group on August 28, 2024 and sell it today you would earn a total of 619.00 from holding Kite Realty Group or generate 29.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeye Inc vs. Kite Realty Group
Performance |
| Timeline |
| Aeye Inc |
| Kite Realty Group |
Aeye and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and Kite Realty
The main advantage of trading using opposite Aeye and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, Kite Realty 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 Kite Realty will offset losses from the drop in Kite Realty's long position.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |