Correlation Between Site Centers and Kilroy Realty
Can any of the company-specific risk be diversified away by investing in both Site Centers and Kilroy 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 Site Centers and Kilroy Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Site Centers Corp and Kilroy Realty Corp, you can compare the effects of market volatilities on Site Centers and Kilroy 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 Site Centers with a short position of Kilroy Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Kilroy Realty.
Diversification Opportunities for Site Centers and Kilroy Realty
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Site and Kilroy is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Kilroy Realty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilroy Realty Corp and Site Centers 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 Site Centers Corp are associated (or correlated) with Kilroy Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilroy Realty Corp has no effect on the direction of Site Centers i.e., Site Centers and Kilroy Realty go up and down completely randomly.
Pair Corralation between Site Centers and Kilroy Realty
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the Kilroy Realty. But the etf apears to be less risky and, when comparing its historical volatility, Site Centers Corp is 1.2 times less risky than Kilroy Realty. The etf trades about -0.26 of its potential returns per unit of risk. The Kilroy Realty Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,128 in Kilroy Realty Corp on August 30, 2024 and sell it today you would earn a total of 77.00 from holding Kilroy Realty Corp or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Kilroy Realty Corp
Performance |
| Timeline |
| Site Centers Corp |
| Kilroy Realty Corp |
Site Centers and Kilroy Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Kilroy Realty
The main advantage of trading using opposite Site Centers and Kilroy Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Kilroy 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 Kilroy Realty will offset losses from the drop in Kilroy Realty's long position.| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
| Kilroy Realty vs. Hudson Pacific Properties | Kilroy Realty vs. Highwoods Properties | Kilroy Realty vs. Cousins Properties Incorporated | Kilroy Realty vs. Piedmont Office Realty |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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