Correlation Between Valvoline and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Valvoline 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 Valvoline and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valvoline and Kite Realty Group, you can compare the effects of market volatilities on Valvoline 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 Valvoline with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valvoline and Kite Realty.
Diversification Opportunities for Valvoline and Kite Realty
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valvoline and Kite is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Valvoline 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 Valvoline 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 Valvoline 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 Valvoline i.e., Valvoline and Kite Realty go up and down completely randomly.
Pair Corralation between Valvoline and Kite Realty
Considering the 90-day investment horizon Valvoline is expected to under-perform the Kite Realty. In addition to that, Valvoline is 2.53 times more volatile than Kite Realty Group. It trades about -0.01 of its total potential returns per unit of risk. Kite Realty Group is currently generating about 0.35 per unit of volatility. If you would invest 2,567 in Kite Realty Group on September 1, 2024 and sell it today you would earn a total of 190.00 from holding Kite Realty Group or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valvoline vs. Kite Realty Group
Performance |
| Timeline |
| Valvoline |
| Kite Realty Group |
Valvoline and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valvoline and Kite Realty
The main advantage of trading using opposite Valvoline and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valvoline 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.| Valvoline vs. Cosan SA ADR | Valvoline vs. Delek Energy | Valvoline vs. Crossamerica Partners LP | Valvoline vs. Par Pacific Holdings |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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