Correlation Between Four Corners and Kimco Realty

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

By analyzing existing cross correlation between Four Corners Property and Kimco Realty, you can compare the effects of market volatilities on Four Corners 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 Four Corners with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Corners and Kimco Realty.

Diversification Opportunities for Four Corners and Kimco Realty

-0.45

Correlation Coefficient

Four Corners  Kimco Realty

Very good diversification

The 3 months correlation between Four and Kimco is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Four Corners Property and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Four Corners 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 Four Corners Property 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 Four Corners i.e., Four Corners and Kimco Realty go up and down completely randomly.

Pair Corralation between Four Corners and Kimco Realty

Given the investment horizon of 90 days Four Corners Property is expected to generate 0.85 times more return on investment than Kimco Realty. However, Four Corners Property is 1.18 times less risky than Kimco Realty. It trades about 0.07 of its potential returns per unit of risk. Kimco Realty is currently generating about -0.09 per unit of risk. If you would invest  2,710  in Four Corners Property on December 27, 2024 and sell it today you would earn a total of  125.00  from holding Four Corners Property or generate 4.61% return on investment over 90 days.

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

Four Corners Property  vs.  Kimco Realty

Four Corners Property

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Four Corners Property are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Four Corners is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Kimco Realty

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kimco Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Four Corners and Kimco Realty

The main advantage of trading using opposite Four Corners and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Corners 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.

The idea behind Four Corners Property and Kimco Realty 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 CEOs Directory module to screen CEOs from public companies around the world.