Correlation Between NH Foods and Kite Realty
Can any of the company-specific risk be diversified away by investing in both NH Foods 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 NH Foods and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Kite Realty Group, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Kite Realty.
Diversification Opportunities for NH Foods and Kite Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Kite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd 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 NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and Kite Realty go up and down completely randomly.
Pair Corralation between NH Foods and Kite Realty
Assuming the 90 days horizon NH Foods is expected to generate 1.03 times less return on investment than Kite Realty. But when comparing it to its historical volatility, NH Foods Ltd is 2.04 times less risky than Kite Realty. It trades about 0.1 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,015 in Kite Realty Group on September 3, 2024 and sell it today you would earn a total of 742.00 from holding Kite Realty Group or generate 36.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Kite Realty Group
Performance |
| Timeline |
| NH Foods |
| Kite Realty Group |
NH Foods and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Kite Realty
The main advantage of trading using opposite NH Foods and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.| NH Foods vs. Kellanova | NH Foods vs. Lancaster Colony | NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Inventrust Properties Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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