Correlation Between Newpark Resources and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Newpark Resources 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 Newpark Resources and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newpark Resources and Kite Realty Group, you can compare the effects of market volatilities on Newpark Resources 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 Newpark Resources with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newpark Resources and Kite Realty.
Diversification Opportunities for Newpark Resources and Kite Realty
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Newpark and Kite is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Newpark Resources 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 Newpark Resources 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 Newpark Resources 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 Newpark Resources i.e., Newpark Resources and Kite Realty go up and down completely randomly.
Pair Corralation between Newpark Resources and Kite Realty
Allowing for the 90-day total investment horizon Newpark Resources is expected to generate 1.74 times more return on investment than Kite Realty. However, Newpark Resources is 1.74 times more volatile than Kite Realty Group. It trades about 0.07 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.05 per unit of risk. If you would invest 382.00 in Newpark Resources on August 30, 2024 and sell it today you would earn a total of 447.00 from holding Newpark Resources or generate 117.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newpark Resources vs. Kite Realty Group
Performance |
| Timeline |
| Newpark Resources |
| Kite Realty Group |
Newpark Resources and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newpark Resources and Kite Realty
The main advantage of trading using opposite Newpark Resources and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newpark Resources 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.| Newpark Resources vs. Now Inc | Newpark Resources vs. Enerflex | Newpark Resources vs. Bristow Group | Newpark Resources vs. Forum Energy Technologies |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |