Correlation Between Rithm Property and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Rithm Property 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 Rithm Property and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Property Trust and Kimco Realty, you can compare the effects of market volatilities on Rithm Property 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 Rithm Property with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Kimco Realty.
Diversification Opportunities for Rithm Property and Kimco Realty
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rithm and Kimco is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Rithm Property 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 Rithm Property Trust 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 Rithm Property i.e., Rithm Property and Kimco Realty go up and down completely randomly.
Pair Corralation between Rithm Property and Kimco Realty
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Kimco Realty. In addition to that, Rithm Property is 2.41 times more volatile than Kimco Realty. It trades about -0.04 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 2,227 in Kimco Realty on October 7, 2024 and sell it today you would lose (44.00) from holding Kimco Realty or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Property Trust vs. Kimco Realty
Performance |
| Timeline |
| Rithm Property Trust |
| Kimco Realty |
Rithm Property and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Property and Kimco Realty
The main advantage of trading using opposite Rithm Property and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property 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.| Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties Corp |
| Kimco Realty vs. Simon Property Group | Kimco Realty vs. Saul Centers | Kimco Realty vs. Rithm Property Trust | Kimco Realty vs. Urban Edge Properties |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |