Correlation Between Stepstone and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Stepstone 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 Stepstone and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stepstone Group and Kite Realty Group, you can compare the effects of market volatilities on Stepstone 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 Stepstone with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Kite Realty.
Diversification Opportunities for Stepstone and Kite Realty
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stepstone and Kite is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone 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 Stepstone 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 Stepstone 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 Stepstone i.e., Stepstone and Kite Realty go up and down completely randomly.
Pair Corralation between Stepstone and Kite Realty
Given the investment horizon of 90 days Stepstone Group is expected to generate 2.86 times more return on investment than Kite Realty. However, Stepstone is 2.86 times more volatile than Kite Realty Group. It trades about 0.13 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.22 per unit of risk. If you would invest 6,192 in Stepstone Group on August 25, 2024 and sell it today you would earn a total of 513.00 from holding Stepstone Group or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stepstone Group vs. Kite Realty Group
Performance |
| Timeline |
| Stepstone Group |
| Kite Realty Group |
Stepstone and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and Kite Realty
The main advantage of trading using opposite Stepstone and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone 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.| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |