Correlation Between NYSE Composite and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kimco Realty, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kimco Realty.
Diversification Opportunities for NYSE Composite and Kimco Realty
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Kimco is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Kimco Realty go up and down completely randomly.
Pair Corralation between NYSE Composite and Kimco Realty
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.09 times less return on investment than Kimco Realty. But when comparing it to its historical volatility, NYSE Composite is 1.45 times less risky than Kimco Realty. It trades about 0.21 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,388 in Kimco Realty on August 27, 2024 and sell it today you would earn a total of 149.00 from holding Kimco Realty or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Kimco Realty
Performance |
| Timeline |
NYSE Composite and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kimco Realty
Pair trading matchups for Kimco Realty
Pair Trading with NYSE Composite and Kimco Realty
The main advantage of trading using opposite NYSE Composite and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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