Correlation Between Urban Edge and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and Kite 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 Kite Realty Group, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Kite Realty.
Diversification Opportunities for Urban Edge and Kite Realty
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Urban and Kite is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties 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 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 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 Urban Edge i.e., Urban Edge and Kite Realty go up and down completely randomly.
Pair Corralation between Urban Edge and Kite Realty
Allowing for the 90-day total investment horizon Urban Edge is expected to generate 1.26 times less return on investment than Kite Realty. In addition to that, Urban Edge is 1.17 times more volatile than Kite Realty Group. It trades about 0.2 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.3 per unit of volatility. If you would invest 2,567 in Kite Realty Group on August 26, 2024 and sell it today you would earn a total of 173.00 from holding Kite Realty Group or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Kite Realty Group
Performance |
| Timeline |
| Urban Edge Properties |
| Kite Realty Group |
Urban Edge and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Kite Realty
The main advantage of trading using opposite Urban Edge and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Site Centers Corp | Urban Edge vs. Inventrust Properties Corp | Urban Edge vs. Retail Opportunity Investments | Urban Edge vs. Netstreit Corp |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. Inventrust Properties Corp | Kite Realty vs. Retail Opportunity Investments | Kite 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |