Correlation Between National Retail and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and Kimco Realty, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and Kimco Realty.
Diversification Opportunities for National Retail and Kimco Realty
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Kimco is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and Kimco Realty go up and down completely randomly.
Pair Corralation between National Retail and Kimco Realty
Considering the 90-day investment horizon National Retail Properties is expected to under-perform the Kimco Realty. In addition to that, National Retail is 1.46 times more volatile than Kimco Realty. It trades about -0.34 of its total potential returns per unit of risk. Kimco Realty is currently generating about -0.11 per unit of volatility. If you would invest 6,135 in Kimco Realty on October 9, 2024 and sell it today you would lose (109.00) from holding Kimco Realty or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. Kimco Realty
Performance |
| Timeline |
| National Retail Prop |
| Kimco Realty |
National Retail and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and Kimco Realty
The main advantage of trading using opposite National Retail and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Acadia Realty Trust | National Retail vs. Federal Realty Investment | National Retail vs. Realty Income | National Retail vs. Whitestone REIT |
| Kimco Realty vs. Paysafe | Kimco Realty vs. Lincoln Electric Holdings | Kimco Realty vs. United Homes Group | Kimco Realty vs. Addus HomeCare |
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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