Correlation Between RPT Realty and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both RPT Realty 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 RPT Realty and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RPT Realty and Kimco Realty, you can compare the effects of market volatilities on RPT Realty 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 RPT Realty with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of RPT Realty and Kimco Realty.
Diversification Opportunities for RPT Realty and Kimco Realty
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RPT and Kimco is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding RPT Realty and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and RPT Realty 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 RPT Realty 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 RPT Realty i.e., RPT Realty and Kimco Realty go up and down completely randomly.
Pair Corralation between RPT Realty and Kimco Realty
Considering the 90-day investment horizon RPT Realty is expected to generate 1.01 times less return on investment than Kimco Realty. In addition to that, RPT Realty is 1.22 times more volatile than Kimco Realty. It trades about 0.03 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.04 per unit of volatility. If you would invest 2,004 in Kimco Realty on August 24, 2024 and sell it today you would earn a total of 533.00 from holding Kimco Realty or generate 26.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 32.06% |
| Values | Daily Returns |
RPT Realty vs. Kimco Realty
Performance |
| Timeline |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kimco Realty |
RPT Realty and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RPT Realty and Kimco Realty
The main advantage of trading using opposite RPT Realty and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RPT Realty 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.| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties Corp |
| Kimco Realty vs. Federal Realty Investment | Kimco Realty vs. Agree Realty | Kimco Realty vs. Tanger Factory Outlet | Kimco 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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