Correlation Between Urstadt Biddle and Kimco Realty

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

By analyzing existing cross correlation between Urstadt Biddle and Kimco Realty, you can compare the effects of market volatilities on Urstadt Biddle and Kimco Realty 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 Urstadt Biddle with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urstadt Biddle and Kimco Realty.

Diversification Opportunities for Urstadt Biddle and Kimco Realty

0.74

Correlation Coefficient

Urstadt Biddle  Kimco Realty

Poor diversification

The 3 months correlation between Urstadt and Kimco is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Urstadt Biddle and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Urstadt Biddle 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 Urstadt Biddle are associated (or correlated) with Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Urstadt Biddle i.e., Urstadt Biddle and Kimco Realty go up and down completely randomly.

Pair Corralation between Urstadt Biddle and Kimco Realty

If you would invest  2,299  in Kimco Realty on September 6, 2024 and sell it today you would earn a total of  231.00  from holding Kimco Realty or generate 10.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Urstadt Biddle  vs.  Kimco Realty

Urstadt Biddle

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urstadt Biddle has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Urstadt Biddle is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Kimco Realty

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kimco Realty are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Kimco Realty may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Urstadt Biddle and Kimco Realty

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

The idea behind Urstadt Biddle and Kimco Realty 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 Stocks Directory module to find actively traded stocks across global markets.