Correlation Between Kimco Realty and Urstadt Biddle
Can any of the company-specific risk be diversified away by investing in both Kimco Realty and Urstadt Biddle 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 Urstadt Biddle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimco Realty and Urstadt Biddle, you can compare the effects of market volatilities on Kimco Realty and Urstadt Biddle 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 Urstadt Biddle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimco Realty and Urstadt Biddle.
Diversification Opportunities for Kimco Realty and Urstadt Biddle
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimco and Urstadt is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kimco Realty and Urstadt Biddle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urstadt Biddle 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 Urstadt Biddle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urstadt Biddle has no effect on the direction of Kimco Realty i.e., Kimco Realty and Urstadt Biddle go up and down completely randomly.
Pair Corralation between Kimco Realty and Urstadt Biddle
Considering the 90-day investment horizon Kimco Realty is expected to generate 4.26 times less return on investment than Urstadt Biddle. But when comparing it to its historical volatility, Kimco Realty is 1.87 times less risky than Urstadt Biddle. It trades about 0.04 of its potential returns per unit of risk. Urstadt Biddle is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,679 in Urstadt Biddle on September 7, 2024 and sell it today you would earn a total of 571.00 from holding Urstadt Biddle or generate 34.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 27.46% |
Values | Daily Returns |
Kimco Realty vs. Urstadt Biddle
Performance |
Timeline |
Kimco Realty |
Urstadt Biddle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kimco Realty and Urstadt Biddle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kimco Realty and Urstadt Biddle
The main advantage of trading using opposite Kimco Realty and Urstadt Biddle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimco Realty position performs unexpectedly, Urstadt Biddle 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 Urstadt Biddle will offset losses from the drop in Urstadt Biddle's long position.Kimco Realty vs. Site Centers Corp | Kimco Realty vs. Federal Realty Investment | Kimco Realty vs. Getty Realty | Kimco Realty vs. Brixmor Property |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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