Correlation Between Mapletree Commercial and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Mapletree Commercial and Kimco 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 Mapletree Commercial and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Commercial Trust and Kimco Realty, you can compare the effects of market volatilities on Mapletree Commercial and Kimco 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 Mapletree Commercial with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Commercial and Kimco Realty.
Diversification Opportunities for Mapletree Commercial and Kimco Realty
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mapletree and Kimco is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Commercial Trust and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Mapletree Commercial 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 Mapletree Commercial Trust are associated (or correlated) with Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Mapletree Commercial i.e., Mapletree Commercial and Kimco Realty go up and down completely randomly.
Pair Corralation between Mapletree Commercial and Kimco Realty
Assuming the 90 days horizon Mapletree Commercial Trust is expected to under-perform the Kimco Realty. In addition to that, Mapletree Commercial is 2.72 times more volatile than Kimco Realty. It trades about -0.22 of its total potential returns per unit of risk. Kimco Realty is currently generating about -0.03 per unit of volatility. If you would invest 2,457 in Kimco Realty on September 14, 2024 and sell it today you would lose (12.00) from holding Kimco Realty or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapletree Commercial Trust vs. Kimco Realty
Performance |
| Timeline |
| Mapletree Commercial |
| Kimco Realty |
Mapletree Commercial and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Commercial and Kimco Realty
The main advantage of trading using opposite Mapletree Commercial and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Commercial position performs unexpectedly, Kimco 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 Kimco Realty will offset losses from the drop in Kimco Realty's long position.| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
| Kimco Realty vs. Site Centers Corp | Kimco Realty vs. CBL Associates Properties | Kimco Realty vs. Urban Edge Properties | Kimco 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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