Correlation Between One Liberty and Kite Realty
Can any of the company-specific risk be diversified away by investing in both One Liberty 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 One Liberty and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Liberty Properties and Kite Realty Group, you can compare the effects of market volatilities on One Liberty 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 One Liberty with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Liberty and Kite Realty.
Diversification Opportunities for One Liberty and Kite Realty
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between One and Kite is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties 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 One Liberty 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 One Liberty Properties 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 One Liberty i.e., One Liberty and Kite Realty go up and down completely randomly.
Pair Corralation between One Liberty and Kite Realty
Considering the 90-day investment horizon One Liberty Properties is expected to generate 1.61 times more return on investment than Kite Realty. However, One Liberty is 1.61 times more volatile than Kite Realty Group. It trades about 0.21 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.3 per unit of risk. If you would invest 2,682 in One Liberty Properties on August 26, 2024 and sell it today you would earn a total of 196.00 from holding One Liberty Properties or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Liberty Properties vs. Kite Realty Group
Performance |
| Timeline |
| One Liberty Properties |
| Kite Realty Group |
One Liberty and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Liberty and Kite Realty
The main advantage of trading using opposite One Liberty and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Liberty 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.| One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty vs. NexPoint Diversified Real |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. Inventrust Properties Corp | Kite Realty vs. Retail Opportunity Investments | Kite 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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