Correlation Between Listed Funds and KIMCO

Can any of the company-specific risk be diversified away by investing in both Listed Funds and KIMCO 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 Listed Funds and KIMCO into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Listed Funds Trust and KIMCO RLTY P, you can compare the effects of market volatilities on Listed Funds and KIMCO 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 Listed Funds with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and KIMCO.

Diversification Opportunities for Listed Funds and KIMCO

-0.44

Correlation Coefficient

Listed Funds  KIMCO

Very good diversification

The 3 months correlation between Listed and KIMCO is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P and Listed Funds 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 Listed Funds Trust are associated (or correlated) with KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Listed Funds i.e., Listed Funds and KIMCO go up and down completely randomly.

Pair Corralation between Listed Funds and KIMCO

Considering the 90-day investment horizon Listed Funds Trust is expected to generate 0.88 times more return on investment than KIMCO. However, Listed Funds Trust is 1.14 times less risky than KIMCO. It trades about 0.37 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.01 per unit of risk. If you would invest  2,500  in Listed Funds Trust on September 25, 2024 and sell it today you would earn a total of  19.50  from holding Listed Funds Trust or generate 0.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Listed Funds Trust  vs.  KIMCO RLTY P

Listed Funds Trust

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Listed Funds Trust are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Listed Funds is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

KIMCO RLTY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KIMCO RLTY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KIMCO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Listed Funds and KIMCO

The main advantage of trading using opposite Listed Funds and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds position performs unexpectedly, KIMCO 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 will offset losses from the drop in KIMCO's long position.

The idea behind Listed Funds Trust and KIMCO RLTY P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.