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
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Urban and Kimco is 0.9. 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 under-perform the Kimco Realty. But the stock apears to be less risky and, when comparing its historical volatility, Urban Edge Properties is 1.03 times less risky than Kimco Realty. The stock trades about -0.2 of its potential returns per unit of risk. The Kimco Realty is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,301 in Kimco Realty on October 20, 2024 and sell it today you would lose (72.00) from holding Kimco Realty or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| 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. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group |
| Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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