Correlation Between Kimco Realty and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Regency Centers 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 Kimco Realty and Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Regency Centers, you can compare the effects of market volatilities on Kimco Realty and Regency Centers 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 Kimco Realty with a short position of Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Regency Centers.
Diversification Opportunities for Kimco Realty and Regency Centers
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kimco and Regency is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers and Kimco 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 Kimco Realty are associated (or correlated) with Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Kimco Realty i.e., Kimco Realty and Regency Centers go up and down completely randomly.
Pair Corralation between Kimco Realty and Regency Centers
Considering the 90-day investment horizon Kimco Realty is expected to under-perform the Regency Centers. In addition to that, Kimco Realty is 1.47 times more volatile than Regency Centers. It trades about -0.02 of its total potential returns per unit of risk. Regency Centers is currently generating about 0.07 per unit of volatility. If you would invest 5,910 in Regency Centers on January 24, 2024 and sell it today you would earn a total of 98.00 from holding Regency Centers or generate 1.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kimco Realty vs. Regency Centers
Performance |
Timeline |
Kimco Realty |
Regency Centers |
Kimco Realty and Regency Centers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kimco Realty and Regency Centers
The main advantage of trading using opposite Kimco Realty and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.Kimco Realty vs. Saul Centers | Kimco Realty vs. Brixmor Property | Kimco Realty vs. Four Corners Property | Kimco Realty vs. NetstreitCorp |
Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Getty Realty | Regency Centers vs. Site Centers Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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