Correlation Between Klépierre and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Klépierre 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 Klépierre and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klpierre SA and Kimco Realty, you can compare the effects of market volatilities on Klépierre 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 Klépierre with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klépierre and Kimco Realty.
Diversification Opportunities for Klépierre and Kimco Realty
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Klépierre and Kimco is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Klpierre SA and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Klépierre 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 Klpierre SA 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 Klépierre i.e., Klépierre and Kimco Realty go up and down completely randomly.
Pair Corralation between Klépierre and Kimco Realty
Assuming the 90 days horizon Klpierre SA is expected to generate 0.84 times more return on investment than Kimco Realty. However, Klpierre SA is 1.19 times less risky than Kimco Realty. It trades about 0.08 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.05 per unit of risk. If you would invest 1,884 in Klpierre SA on December 11, 2024 and sell it today you would earn a total of 1,134 from holding Klpierre SA or generate 60.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Klpierre SA vs. Kimco Realty
Performance |
Timeline |
Klpierre SA |
Kimco Realty |
Klépierre and Kimco Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Klépierre and Kimco Realty
The main advantage of trading using opposite Klépierre and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klépierre 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.Klépierre vs. Yuexiu Transport Infrastructure | Klépierre vs. USWE SPORTS AB | Klépierre vs. Gaztransport Technigaz SA | Klépierre vs. SPORTING |
Kimco Realty vs. UNIVERSAL DISPLAY | Kimco Realty vs. BRIT AMER TOBACCO | Kimco Realty vs. CSSC Offshore Marine | Kimco Realty vs. Ming Le Sports |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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