Correlation Between Kimco Realty and Wheeler Real

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

By analyzing existing cross correlation between Kimco Realty and Wheeler Real Estate, you can compare the effects of market volatilities on Kimco Realty and Wheeler Real 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 Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Wheeler Real.

Diversification Opportunities for Kimco Realty and Wheeler Real

0.3

Correlation Coefficient

Kimco Realty  Wheeler Real

Weak diversification

The 3 months correlation between Kimco and Wheeler is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate 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 Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Kimco Realty i.e., Kimco Realty and Wheeler Real go up and down completely randomly.

Pair Corralation between Kimco Realty and Wheeler Real

Assuming the 90 days trading horizon Kimco Realty is expected to generate 900.68 times less return on investment than Wheeler Real. But when comparing it to its historical volatility, Kimco Realty is 53.8 times less risky than Wheeler Real. It trades about 0.01 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  618.00  in Wheeler Real Estate on September 4, 2024 and sell it today you would earn a total of  142.00  from holding Wheeler Real Estate or generate 22.98% return on investment over 90 days.

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

Kimco Realty  vs.  Wheeler Real Estate

Kimco Realty

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Kimco Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Kimco Realty is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Wheeler Real Estate

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wheeler Real Estate are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting essential indicators, Wheeler Real reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kimco Realty and Wheeler Real

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

The idea behind Kimco Realty and Wheeler Real Estate 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..