Correlation Between Molina Healthcare and KIMCO
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By analyzing existing cross correlation between Molina Healthcare and KIMCO RLTY P, you can compare the effects of market volatilities on Molina Healthcare 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 Molina Healthcare with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molina Healthcare and KIMCO.
Diversification Opportunities for Molina Healthcare and KIMCO
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Molina and KIMCO is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Molina Healthcare 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 Molina Healthcare 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 Molina Healthcare 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 Molina Healthcare i.e., Molina Healthcare and KIMCO go up and down completely randomly.
Pair Corralation between Molina Healthcare and KIMCO
Considering the 90-day investment horizon Molina Healthcare is expected to generate 1.19 times more return on investment than KIMCO. However, Molina Healthcare is 1.19 times more volatile than KIMCO RLTY P. It trades about -0.02 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about -0.03 per unit of risk. If you would invest 34,697 in Molina Healthcare on November 3, 2024 and sell it today you would lose (3,656) from holding Molina Healthcare or give up 10.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 32.8% |
| Values | Daily Returns |
Molina Healthcare vs. KIMCO RLTY P
Performance |
| Timeline |
| Molina Healthcare |
| KIMCO RLTY P |
Molina Healthcare and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molina Healthcare and KIMCO
The main advantage of trading using opposite Molina Healthcare and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molina Healthcare 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.| Molina Healthcare vs. Cigna Corp | Molina Healthcare vs. Humana Inc | Molina Healthcare vs. Elevance Health | Molina Healthcare vs. Alignment Healthcare LLC |
| KIMCO vs. Park Ohio Holdings | KIMCO vs. Cimpress NV | KIMCO vs. Jacobs Solutions | KIMCO vs. Tritent International Agriculture |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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