Correlation Between Urban Edge and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Kimco Realty, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Kimco Realty.
Diversification Opportunities for Urban Edge and Kimco Realty
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Urban and Kimco is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Urban Edge 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 Urban Edge Properties 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 Urban Edge i.e., Urban Edge and Kimco Realty go up and down completely randomly.
Pair Corralation between Urban Edge and Kimco Realty
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.54 times more return on investment than Kimco Realty. However, Urban Edge is 1.54 times more volatile than Kimco Realty. It trades about 0.1 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.02 per unit of risk. If you would invest 1,409 in Urban Edge Properties on August 31, 2024 and sell it today you would earn a total of 892.00 from holding Urban Edge Properties or generate 63.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Kimco Realty
Performance |
| Timeline |
| Urban Edge Properties |
| Kimco Realty |
Urban Edge and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Kimco Realty
The main advantage of trading using opposite Urban Edge and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| Kimco Realty vs. Site Centers Corp | Kimco Realty vs. Urban Edge Properties | Kimco Realty vs. Retail Opportunity Investments | Kimco Realty vs. Brixmor Property |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |