Correlation Between Western Sierra and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Western Sierra 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 Western Sierra and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Sierra Mining and Kite Realty Group, you can compare the effects of market volatilities on Western Sierra 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 Western Sierra with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Sierra and Kite Realty.
Diversification Opportunities for Western Sierra and Kite Realty
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Kite is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Western Sierra Mining 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 Western Sierra 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 Western Sierra Mining 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 Western Sierra i.e., Western Sierra and Kite Realty go up and down completely randomly.
Pair Corralation between Western Sierra and Kite Realty
Given the investment horizon of 90 days Western Sierra is expected to generate 321.1 times less return on investment than Kite Realty. But when comparing it to its historical volatility, Western Sierra Mining is 2.2 times less risky than Kite Realty. It trades about 0.0 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,580 in Kite Realty Group on September 2, 2024 and sell it today you would earn a total of 177.00 from holding Kite Realty Group or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Sierra Mining vs. Kite Realty Group
Performance |
| Timeline |
| Western Sierra Mining |
| Kite Realty Group |
Western Sierra and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Sierra and Kite Realty
The main advantage of trading using opposite Western Sierra and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Sierra 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.| Western Sierra vs. Holloman Energy Corp | Western Sierra vs. cbdMD Inc | Western Sierra vs. Evolus Inc | Western Sierra vs. CV Sciences |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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