Correlation Between Kimco Realty and Rithm Property

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

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

Diversification Opportunities for Kimco Realty and Rithm Property

-0.39

Correlation Coefficient

Kimco Realty  Rithm Property

Very good diversification

The 3 months correlation between Kimco and Rithm is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Rithm Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Property Trust 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 Rithm Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Property Trust has no effect on the direction of Kimco Realty i.e., Kimco Realty and Rithm Property go up and down completely randomly.

Pair Corralation between Kimco Realty and Rithm Property

Considering the 90-day investment horizon Kimco Realty is expected to under-perform the Rithm Property. But the stock apears to be less risky and, when comparing its historical volatility, Kimco Realty is 1.68 times less risky than Rithm Property. The stock trades about -0.12 of its potential returns per unit of risk. The Rithm Property Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  287.00  in Rithm Property Trust on December 23, 2024 and sell it today you would earn a total of  12.00  from holding Rithm Property Trust or generate 4.18% return on investment over 90 days.

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

Kimco Realty  vs.  Rithm Property Trust

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.

Rithm Property Trust

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Rithm Property Trust are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Rithm Property 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 Rithm Property

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

The idea behind Kimco Realty and Rithm Property Trust 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.