Correlation Between Nomura Holdings and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings 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 Nomura Holdings and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomura Holdings ADR and Kite Realty Group, you can compare the effects of market volatilities on Nomura Holdings 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 Nomura Holdings with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and Kite Realty.
Diversification Opportunities for Nomura Holdings and Kite Realty
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nomura and Kite is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR 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 Nomura Holdings 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 Nomura Holdings ADR 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 Nomura Holdings i.e., Nomura Holdings and Kite Realty go up and down completely randomly.
Pair Corralation between Nomura Holdings and Kite Realty
Considering the 90-day investment horizon Nomura Holdings ADR is expected to generate 1.77 times more return on investment than Kite Realty. However, Nomura Holdings is 1.77 times more volatile than Kite Realty Group. It trades about 0.43 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.28 per unit of risk. If you would invest 517.00 in Nomura Holdings ADR on August 28, 2024 and sell it today you would earn a total of 91.00 from holding Nomura Holdings ADR or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomura Holdings ADR vs. Kite Realty Group
Performance |
| Timeline |
| Nomura Holdings ADR |
| Kite Realty Group |
Nomura Holdings and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and Kite Realty
The main advantage of trading using opposite Nomura Holdings and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings 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.| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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