Correlation Between Kite Realty and One Liberty

Can any of the company-specific risk be diversified away by investing in both Kite Realty and One Liberty 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 One Liberty 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 One Liberty Properties, you can compare the effects of market volatilities on Kite Realty and One Liberty 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 One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and One Liberty.

Diversification Opportunities for Kite Realty and One Liberty

0.93

Correlation Coefficient

Kite Realty  One Liberty

Almost no diversification

The 3 months correlation between Kite and One is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty Properties 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 One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of Kite Realty i.e., Kite Realty and One Liberty go up and down completely randomly.

Pair Corralation between Kite Realty and One Liberty

Considering the 90-day investment horizon Kite Realty Group is expected to under-perform the One Liberty. In addition to that, Kite Realty is 1.67 times more volatile than One Liberty Properties. It trades about -0.23 of its total potential returns per unit of risk. One Liberty Properties is currently generating about 0.06 per unit of volatility. If you would invest  2,602  in One Liberty Properties on November 28, 2024 and sell it today you would earn a total of  32.00  from holding One Liberty Properties or generate 1.23% return on investment over 90 days.

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

Kite Realty Group  vs.  One Liberty Properties

Kite Realty Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kite Realty Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

One Liberty Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days One Liberty Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Kite Realty and One Liberty

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

The idea behind Kite Realty Group and One Liberty Properties 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..