Correlation Between SFL and KIMCO
Specify exactly 2 symbols:
By analyzing existing cross correlation between SFL Corporation and KIMCO RLTY P, you can compare the effects of market volatilities on SFL and KIMCO 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 SFL with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and KIMCO.
Diversification Opportunities for SFL and KIMCO
Excellent diversification
The 3 months correlation between SFL and KIMCO is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P and SFL 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 SFL Corporation are associated (or correlated) with KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of SFL i.e., SFL and KIMCO go up and down completely randomly.
Pair Corralation between SFL and KIMCO
Considering the 90-day investment horizon SFL Corporation is expected to generate 0.31 times more return on investment than KIMCO. However, SFL Corporation is 3.2 times less risky than KIMCO. It trades about -0.06 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about -0.06 per unit of risk. If you would invest 1,067 in SFL Corporation on September 4, 2024 and sell it today you would lose (22.00) from holding SFL Corporation or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
SFL Corp. vs. KIMCO RLTY P
Performance |
| Timeline |
| SFL Corporation |
| KIMCO RLTY P |
SFL and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFL and KIMCO
The main advantage of trading using opposite SFL and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL position performs unexpectedly, KIMCO 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 will offset losses from the drop in KIMCO's long position.The idea behind SFL Corporation and KIMCO RLTY P 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.| KIMCO vs. SFL Corporation | KIMCO vs. Eldorado Gold Corp | KIMCO vs. Artisan Partners Asset | KIMCO vs. Jacobs Solutions |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |