Correlation Between Netstreit Corp and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Netstreit Corp 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 Netstreit Corp and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netstreit Corp and Kimco Realty, you can compare the effects of market volatilities on Netstreit Corp 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 Netstreit Corp with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netstreit Corp and Kimco Realty.
Diversification Opportunities for Netstreit Corp and Kimco Realty
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netstreit and Kimco is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Netstreit Corp and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Netstreit Corp 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 Netstreit Corp 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 Netstreit Corp i.e., Netstreit Corp and Kimco Realty go up and down completely randomly.
Pair Corralation between Netstreit Corp and Kimco Realty
Given the investment horizon of 90 days Netstreit Corp is expected to generate 0.91 times more return on investment than Kimco Realty. However, Netstreit Corp is 1.1 times less risky than Kimco Realty. It trades about 0.22 of its potential returns per unit of risk. Kimco Realty is currently generating about -0.11 per unit of risk. If you would invest 1,384 in Netstreit Corp on October 20, 2024 and sell it today you would earn a total of 73.00 from holding Netstreit Corp or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netstreit Corp vs. Kimco Realty
Performance |
| Timeline |
| Netstreit Corp |
| Kimco Realty |
Netstreit Corp and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netstreit Corp and Kimco Realty
The main advantage of trading using opposite Netstreit Corp and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netstreit Corp 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.| Netstreit Corp vs. Rithm Property Trust | Netstreit Corp vs. Four Corners Property | Netstreit Corp vs. Getty Realty | Netstreit Corp vs. Saul Centers |
| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. Netstreit 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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