Correlation Between Rithm Property and Klépierre

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

By analyzing existing cross correlation between Rithm Property Trust and Klpierre SA, you can compare the effects of market volatilities on Rithm Property and Klépierre 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 Rithm Property with a short position of Klépierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Klépierre.

Diversification Opportunities for Rithm Property and Klépierre

0.5

Correlation Coefficient

Rithm Property  Klépierre

Very weak diversification

The 3 months correlation between Rithm and Klépierre is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA and Rithm Property 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 Rithm Property Trust are associated (or correlated) with Klépierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of Rithm Property i.e., Rithm Property and Klépierre go up and down completely randomly.

Pair Corralation between Rithm Property and Klépierre

Considering the 90-day investment horizon Rithm Property is expected to generate 21.86 times less return on investment than Klépierre. In addition to that, Rithm Property is 1.1 times more volatile than Klpierre SA. It trades about 0.01 of its total potential returns per unit of risk. Klpierre SA is currently generating about 0.15 per unit of volatility. If you would invest  2,811  in Klpierre SA on December 28, 2024 and sell it today you would earn a total of  524.00  from holding Klpierre SA or generate 18.64% return on investment over 90 days.

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

Rithm Property Trust  vs.  Klpierre SA

Rithm Property Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rithm Property Trust has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Klpierre SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Klpierre SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Klépierre reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rithm Property and Klépierre

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

The idea behind Rithm Property Trust and Klpierre SA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.