Correlation Between Wheeler Real and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Wheeler Real 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 Wheeler Real and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheeler Real Estate and Kite Realty Group, you can compare the effects of market volatilities on Wheeler Real 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 Wheeler Real with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Kite Realty.
Diversification Opportunities for Wheeler Real and Kite Realty
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wheeler and Kite is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate 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 Wheeler Real 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 Wheeler Real Estate 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 Wheeler Real i.e., Wheeler Real and Kite Realty go up and down completely randomly.
Pair Corralation between Wheeler Real and Kite Realty
Assuming the 90 days horizon Wheeler Real Estate is expected to under-perform the Kite Realty. In addition to that, Wheeler Real is 2.93 times more volatile than Kite Realty Group. It trades about -0.02 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 Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wheeler Real Estate vs. Kite Realty Group
Performance |
| Timeline |
| Wheeler Real Estate |
| Kite Realty Group |
Wheeler Real and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and Kite Realty
The main advantage of trading using opposite Wheeler Real and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real 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.| Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Saul Centers | Wheeler Real vs. Wheeler Real Estate |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets |