Correlation Between Kimco Realty and RPT Realty

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

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

Diversification Opportunities for Kimco Realty and RPT Realty

0.9

Correlation Coefficient

Kimco Realty  RPT Realty

Almost no diversification

The 3 months correlation between Kimco and RPT is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and RPT Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPT Realty 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 RPT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPT Realty has no effect on the direction of Kimco Realty i.e., Kimco Realty and RPT Realty go up and down completely randomly.

Pair Corralation between Kimco Realty and RPT Realty

If you would invest  2,299  in Kimco Realty on September 3, 2024 and sell it today you would earn a total of  258.00  from holding Kimco Realty or generate 11.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	1.56%
Values	Daily Returns

Kimco Realty  vs.  RPT Realty

Kimco Realty

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kimco Realty are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Kimco Realty may actually be approaching a critical reversion point that can send shares even higher in January 2025.

RPT Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RPT Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, RPT Realty is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kimco Realty and RPT Realty

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

The idea behind Kimco Realty and RPT 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.