Correlation Between Kimco Realty and Klpierre

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

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

Diversification Opportunities for Kimco Realty and Klpierre

-0.63

Correlation Coefficient

Kimco Realty  Klpierre

Excellent diversification

The 3 months correlation between Kimco and Klpierre is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA and Kimco Realty 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 Kimco Realty are associated (or correlated) with Klpierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of Kimco Realty i.e., Kimco Realty and Klpierre go up and down completely randomly.

Pair Corralation between Kimco Realty and Klpierre

Assuming the 90 days horizon Kimco Realty is expected to under-perform the Klpierre. But the stock apears to be less risky and, when comparing its historical volatility, Kimco Realty is 1.02 times less risky than Klpierre. The stock trades about -0.27 of its potential returns per unit of risk. The Klpierre SA is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest  2,892  in Klpierre SA on September 22, 2024 and sell it today you would lose (160.00) from holding Klpierre SA or give up 5.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Kimco Realty  vs.  Klpierre SA

Kimco Realty

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kimco Realty are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kimco Realty may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Klpierre SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Klpierre SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Kimco Realty and Klpierre

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

The idea behind Kimco Realty and Klpierre SA 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.