Correlation Between Whitestone REIT and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Whitestone REIT 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 Whitestone REIT and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitestone REIT and Kimco Realty, you can compare the effects of market volatilities on Whitestone REIT 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 Whitestone REIT with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitestone REIT and Kimco Realty.
Diversification Opportunities for Whitestone REIT and Kimco Realty
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Whitestone and Kimco is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Whitestone REIT and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Whitestone REIT 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 Whitestone REIT 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 Whitestone REIT i.e., Whitestone REIT and Kimco Realty go up and down completely randomly.
Pair Corralation between Whitestone REIT and Kimco Realty
Considering the 90-day investment horizon Whitestone REIT is expected to generate 1.6 times less return on investment than Kimco Realty. In addition to that, Whitestone REIT is 1.25 times more volatile than Kimco Realty. It trades about 0.21 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.42 per unit of volatility. If you would invest 2,367 in Kimco Realty on August 30, 2024 and sell it today you would earn a total of 211.00 from holding Kimco Realty or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whitestone REIT vs. Kimco Realty
Performance |
| Timeline |
| Whitestone REIT |
| Kimco Realty |
Whitestone REIT and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitestone REIT and Kimco Realty
The main advantage of trading using opposite Whitestone REIT and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitestone REIT 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.| Whitestone REIT vs. Regency Centers | Whitestone REIT vs. Saul Centers | Whitestone REIT vs. Retail Opportunity Investments | Whitestone REIT vs. Site Centers Corp |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |