Correlation Between ATRenew and Kite Realty
Can any of the company-specific risk be diversified away by investing in both ATRenew 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 ATRenew and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRenew Inc DRC and Kite Realty Group, you can compare the effects of market volatilities on ATRenew 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 ATRenew with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRenew and Kite Realty.
Diversification Opportunities for ATRenew and Kite Realty
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ATRenew and Kite is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ATRenew Inc DRC 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 ATRenew 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 ATRenew Inc DRC 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 ATRenew i.e., ATRenew and Kite Realty go up and down completely randomly.
Pair Corralation between ATRenew and Kite Realty
Given the investment horizon of 90 days ATRenew Inc DRC is expected to generate 2.01 times more return on investment than Kite Realty. However, ATRenew is 2.01 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 -0.1 per unit of risk. If you would invest 264.00 in ATRenew Inc DRC on November 18, 2024 and sell it today you would earn a total of 42.00 from holding ATRenew Inc DRC or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRenew Inc DRC vs. Kite Realty Group
Performance |
| Timeline |
| ATRenew Inc DRC |
| Kite Realty Group |
ATRenew and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRenew and Kite Realty
The main advantage of trading using opposite ATRenew and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRenew 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.The idea behind ATRenew Inc DRC and Kite Realty Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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