Correlation Between Skylight Health and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Skylight Health 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 Skylight Health and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skylight Health Group and Kite Realty Group, you can compare the effects of market volatilities on Skylight Health 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 Skylight Health with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skylight Health and Kite Realty.
Diversification Opportunities for Skylight Health and Kite Realty
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skylight and Kite is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Skylight Health Group 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 Skylight Health 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 Skylight Health Group 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 Skylight Health i.e., Skylight Health and Kite Realty go up and down completely randomly.
Pair Corralation between Skylight Health and Kite Realty
Assuming the 90 days horizon Skylight Health Group is expected to generate 234.25 times more return on investment than Kite Realty. However, Skylight Health is 234.25 times more volatile than Kite Realty Group. It trades about 0.25 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.15 per unit of risk. If you would invest 0.00 in Skylight Health Group on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Skylight Health Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 10.4% |
| Values | Daily Returns |
Skylight Health Group vs. Kite Realty Group
Performance |
| Timeline |
| Skylight Health Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kite Realty Group |
Skylight Health and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skylight Health and Kite Realty
The main advantage of trading using opposite Skylight Health and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skylight Health 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.| Skylight Health vs. Uber Technologies | Skylight Health vs. Arrow Electronics | Skylight Health vs. Lipocine | Skylight Health vs. Valneva SE ADR |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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