Correlation Between Simon Property and Kilroy Realty
Can any of the company-specific risk be diversified away by investing in both Simon Property 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 Simon Property and Kilroy 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 Kilroy Realty Corp, you can compare the effects of market volatilities on Simon Property 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 Simon Property with a short position of Kilroy Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Kilroy Realty.
Diversification Opportunities for Simon Property and Kilroy Realty
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simon and Kilroy is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group 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 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 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 Simon Property i.e., Simon Property and Kilroy Realty go up and down completely randomly.
Pair Corralation between Simon Property and Kilroy Realty
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.62 times more return on investment than Kilroy Realty. However, Simon Property Group is 1.61 times less risky than Kilroy Realty. It trades about 0.12 of its potential returns per unit of risk. Kilroy Realty Corp is currently generating about 0.05 per unit of risk. If you would invest 12,216 in Simon Property Group on August 27, 2024 and sell it today you would earn a total of 5,898 from holding Simon Property Group or generate 48.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Kilroy Realty Corp
Performance |
| Timeline |
| Simon Property Group |
| Kilroy Realty Corp |
Simon Property and Kilroy Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Kilroy Realty
The main advantage of trading using opposite Simon Property and Kilroy Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property 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.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |