Correlation Between Site Centers and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Site Centers 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 Site Centers and Kite 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 Kite Realty Group, you can compare the effects of market volatilities on Site Centers 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 Site Centers with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Kite Realty.
Diversification Opportunities for Site Centers and Kite Realty
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Site and Kite is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp 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 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 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 Site Centers i.e., Site Centers and Kite Realty go up and down completely randomly.
Pair Corralation between Site Centers and Kite Realty
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the Kite Realty. In addition to that, Site Centers is 1.52 times more volatile than Kite Realty Group. It trades about -0.13 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.3 per unit of volatility. If you would invest 2,567 in Kite Realty Group on August 26, 2024 and sell it today you would earn a total of 173.00 from holding Kite Realty Group or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Kite Realty Group
Performance |
| Timeline |
| Site Centers Corp |
| Kite Realty Group |
Site Centers and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Kite Realty
The main advantage of trading using opposite Site Centers and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers 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.| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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