Correlation Between Retail Opportunity and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Retail Opportunity 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 Retail Opportunity and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Opportunity Investments and Kimco Realty, you can compare the effects of market volatilities on Retail Opportunity 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 Retail Opportunity with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Opportunity and Kimco Realty.
Diversification Opportunities for Retail Opportunity and Kimco Realty
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Retail and Kimco is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Retail Opportunity 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 Retail Opportunity Investments 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 Retail Opportunity i.e., Retail Opportunity and Kimco Realty go up and down completely randomly.
Pair Corralation between Retail Opportunity and Kimco Realty
Given the investment horizon of 90 days Retail Opportunity Investments is expected to generate 0.13 times more return on investment than Kimco Realty. However, Retail Opportunity Investments is 7.75 times less risky than Kimco Realty. It trades about 0.11 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.0 per unit of risk. If you would invest 1,747 in Retail Opportunity Investments on November 29, 2024 and sell it today you would earn a total of 2.00 from holding Retail Opportunity Investments or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Retail Opportunity Investments vs. Kimco Realty
Performance |
| Timeline |
| Retail Opportunity |
Risk-Adjusted Performance
Good
Weak | Strong |
| Kimco Realty |
Retail Opportunity and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Opportunity and Kimco Realty
The main advantage of trading using opposite Retail Opportunity and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Opportunity 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.| Retail Opportunity vs. Kite Realty Group | Retail Opportunity vs. Rithm Property Trust | Retail Opportunity vs. Urban Edge Properties | Retail Opportunity vs. Acadia Realty Trust |
| Kimco Realty vs. Cedar Realty Trust | Kimco Realty vs. Saul Centers | Kimco Realty vs. Kimco Realty | Kimco Realty vs. Simon Property Group |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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