Correlation Between Realty Income and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Realty Income 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 Realty Income and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realty Income and Kimco Realty, you can compare the effects of market volatilities on Realty Income 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 Realty Income with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realty Income and Kimco Realty.
Diversification Opportunities for Realty Income and Kimco Realty
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Realty and Kimco is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Realty Income and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Realty Income 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 Realty Income 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 Realty Income i.e., Realty Income and Kimco Realty go up and down completely randomly.
Pair Corralation between Realty Income and Kimco Realty
Taking into account the 90-day investment horizon Realty Income is expected to under-perform the Kimco Realty. In addition to that, Realty Income is 1.43 times more volatile than Kimco Realty. It trades about -0.15 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.09 per unit of volatility. If you would invest 6,010 in Kimco Realty on September 12, 2024 and sell it today you would earn a total of 246.00 from holding Kimco Realty or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Realty Income vs. Kimco Realty
Performance |
| Timeline |
| Realty Income |
| Kimco Realty |
Realty Income and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realty Income and Kimco Realty
The main advantage of trading using opposite Realty Income and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realty Income 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.| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
| Kimco Realty vs. Agree Realty | Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Saul Centers |
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 Stocks Directory module to find actively traded stocks across global markets.
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