Correlation Between Pennsylvania Real and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Pennsylvania Real 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 Pennsylvania Real and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pennsylvania Real Estate and Kite Realty Group, you can compare the effects of market volatilities on Pennsylvania Real 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 Pennsylvania Real with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pennsylvania Real and Kite Realty.
Diversification Opportunities for Pennsylvania Real and Kite Realty
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pennsylvania and Kite is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Pennsylvania Real Estate 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 Pennsylvania Real 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 Pennsylvania Real Estate 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 Pennsylvania Real i.e., Pennsylvania Real and Kite Realty go up and down completely randomly.
Pair Corralation between Pennsylvania Real and Kite Realty
If you would invest 2,567 in Kite Realty Group on September 1, 2024 and sell it today you would earn a total of 190.00 from holding Kite Realty Group or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Pennsylvania Real Estate vs. Kite Realty Group
Performance |
| Timeline |
| Pennsylvania Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kite Realty Group |
Pennsylvania Real and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pennsylvania Real and Kite Realty
The main advantage of trading using opposite Pennsylvania Real and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pennsylvania Real 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.| Pennsylvania Real vs. Brixmor Property | Pennsylvania Real vs. Alexander Baldwin Holdings | Pennsylvania Real vs. Acadia Realty Trust | Pennsylvania Real vs. Kite Realty Group |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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