Correlation Between Simon Property and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Simon Property and Kimco 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 Simon Property and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Kimco Realty, you can compare the effects of market volatilities on Simon Property and Kimco 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 Simon Property with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Kimco Realty.
Diversification Opportunities for Simon Property and Kimco Realty
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simon and Kimco is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Simon Property 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 Simon Property Group are associated (or correlated) with Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Simon Property i.e., Simon Property and Kimco Realty go up and down completely randomly.
Pair Corralation between Simon Property and Kimco Realty
Considering the 90-day investment horizon Simon Property is expected to generate 1.15 times less return on investment than Kimco Realty. In addition to that, Simon Property is 1.07 times more volatile than Kimco Realty. It trades about 0.19 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.23 per unit of volatility. If you would invest 2,396 in Kimco Realty on August 24, 2024 and sell it today you would earn a total of 135.00 from holding Kimco Realty or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Kimco Realty
Performance |
| Timeline |
| Simon Property Group |
| Kimco Realty |
Simon Property and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Kimco Realty
The main advantage of trading using opposite Simon Property and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Kimco 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 Kimco Realty will offset losses from the drop in Kimco Realty's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. Tanger Factory Outlet | Simon Property vs. Netstreit Corp |
| Kimco Realty vs. Federal Realty Investment | Kimco Realty vs. Agree Realty | Kimco Realty vs. Tanger Factory Outlet | Kimco Realty vs. Netstreit Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |