Correlation Between Rithm Property and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Rithm Property 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 Rithm Property and Kite 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 Kite Realty Group, you can compare the effects of market volatilities on Rithm Property 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 Rithm Property with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Kite Realty.
Diversification Opportunities for Rithm Property and Kite Realty
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rithm and Kite is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust 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 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 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 Rithm Property i.e., Rithm Property and Kite Realty go up and down completely randomly.
Pair Corralation between Rithm Property and Kite Realty
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Kite Realty. In addition to that, Rithm Property is 1.84 times more volatile than Kite Realty Group. It trades about -0.16 of its total potential returns per unit of risk. Kite Realty Group is currently generating about -0.21 per unit of volatility. If you would invest 2,694 in Kite Realty Group on September 18, 2024 and sell it today you would lose (95.00) from holding Kite Realty Group or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Property Trust vs. Kite Realty Group
Performance |
| Timeline |
| Rithm Property Trust |
| Kite Realty Group |
Rithm Property and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Property and Kite Realty
The main advantage of trading using opposite Rithm Property and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property 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.| Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties Corp |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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