Correlation Between Tanger Factory and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Tanger Factory 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 Tanger Factory and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tanger Factory Outlet and Kite Realty Group, you can compare the effects of market volatilities on Tanger Factory 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 Tanger Factory with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Kite Realty.
Diversification Opportunities for Tanger Factory and Kite Realty
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tanger and Kite is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet 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 Tanger Factory 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 Tanger Factory Outlet 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 Tanger Factory i.e., Tanger Factory and Kite Realty go up and down completely randomly.
Pair Corralation between Tanger Factory and Kite Realty
Considering the 90-day investment horizon Tanger Factory Outlet is expected to generate 1.19 times more return on investment than Kite Realty. However, Tanger Factory is 1.19 times more volatile than Kite Realty Group. It trades about 0.35 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.28 per unit of risk. If you would invest 3,350 in Tanger Factory Outlet on August 28, 2024 and sell it today you would earn a total of 317.00 from holding Tanger Factory Outlet or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Kite Realty Group
Performance |
| Timeline |
| Tanger Factory Outlet |
| Kite Realty Group |
Tanger Factory and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Kite Realty
The main advantage of trading using opposite Tanger Factory and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory 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.| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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