Correlation Between Kite Realty and 532457BZ0

Can any of the company-specific risk be diversified away by investing in both Kite Realty and 532457BZ0 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 532457BZ0 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 ELI LILLY AND, you can compare the effects of market volatilities on Kite Realty and 532457BZ0 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 532457BZ0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and 532457BZ0.

Diversification Opportunities for Kite Realty and 532457BZ0

0.04

Correlation Coefficient

Kite Realty  532457BZ0

Significant diversification

The 3 months correlation between Kite and 532457BZ0 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group and ELI LILLY AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELI LILLY AND 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 532457BZ0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELI LILLY AND has no effect on the direction of Kite Realty i.e., Kite Realty and 532457BZ0 go up and down completely randomly.

Pair Corralation between Kite Realty and 532457BZ0

Considering the 90-day investment horizon Kite Realty Group is expected to under-perform the 532457BZ0. But the stock apears to be less risky and, when comparing its historical volatility, Kite Realty Group is 1.22 times less risky than 532457BZ0. The stock trades about -0.12 of its potential returns per unit of risk. The ELI LILLY AND is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5,354  in ELI LILLY AND on December 24, 2024 and sell it today you would earn a total of  357.00  from holding ELI LILLY AND or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.67%
Values	Daily Returns

Kite Realty Group  vs.  ELI LILLY AND

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 latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

ELI LILLY AND

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ELI LILLY AND are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, 532457BZ0 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Kite Realty and 532457BZ0

The main advantage of trading using opposite Kite Realty and 532457BZ0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty position performs unexpectedly, 532457BZ0 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 532457BZ0 will offset losses from the drop in 532457BZ0's long position.

The idea behind Kite Realty Group and ELI LILLY AND 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.