Correlation Between Kite Realty and GRAIL, LLC

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

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

Diversification Opportunities for Kite Realty and GRAIL, LLC

0.59

Correlation Coefficient

Kite Realty  GRAIL, LLC

Very weak diversification

The 3 months correlation between Kite and GRAIL, is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and GRAIL, LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRAIL, LLC and Kite 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 Kite Realty Group are associated (or correlated) with GRAIL, LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRAIL, LLC has no effect on the direction of Kite Realty i.e., Kite Realty and GRAIL, LLC go up and down completely randomly.

Pair Corralation between Kite Realty and GRAIL, LLC

Considering the 90-day investment horizon Kite Realty is expected to generate 73.92 times less return on investment than GRAIL, LLC. But when comparing it to its historical volatility, Kite Realty Group is 3.99 times less risky than GRAIL, LLC. It trades about 0.01 of its potential returns per unit of risk. GRAIL, LLC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,355  in GRAIL, LLC on September 12, 2024 and sell it today you would earn a total of  691.00  from holding GRAIL, LLC or generate 51.0% return on investment over 90 days.

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

Kite Realty Group  vs.  GRAIL, LLC

Kite Realty Group

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Kite Realty Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Kite Realty is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

GRAIL, LLC

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GRAIL, LLC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, GRAIL, LLC disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kite Realty and GRAIL, LLC

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

The idea behind Kite Realty Group and GRAIL, LLC 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.