Correlation Between 3M and KIMCO
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By analyzing existing cross correlation between 3M Company and KIMCO RLTY P, you can compare the effects of market volatilities on 3M and KIMCO 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 3M with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and KIMCO.
Diversification Opportunities for 3M and KIMCO
Very good diversification
The 3 months correlation between 3M and KIMCO is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P and 3M 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 3M Company are associated (or correlated) with KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of 3M i.e., 3M and KIMCO go up and down completely randomly.
Pair Corralation between 3M and KIMCO
Considering the 90-day investment horizon 3M Company is expected to generate 1.07 times more return on investment than KIMCO. However, 3M is 1.07 times more volatile than KIMCO RLTY P. It trades about 0.11 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.02 per unit of risk. If you would invest 9,801 in 3M Company on September 3, 2024 and sell it today you would earn a total of 3,552 from holding 3M Company or generate 36.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.4% |
| Values | Daily Returns |
3M Company vs. KIMCO RLTY P
Performance |
| Timeline |
| 3M Company |
| KIMCO RLTY P |
3M and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and KIMCO
The main advantage of trading using opposite 3M and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, KIMCO 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 KIMCO will offset losses from the drop in KIMCO's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified Holdings |
| KIMCO vs. SFL Corporation | KIMCO vs. Eldorado Gold Corp | KIMCO vs. Artisan Partners Asset | KIMCO vs. Jacobs Solutions |
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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