Correlation Between Adient PLC and Kimco Realty

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

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

Diversification Opportunities for Adient PLC and Kimco Realty

0.77

Correlation Coefficient

Adient PLC  Kimco Realty

Poor diversification

The 3 months correlation between Adient and Kimco is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Adient PLC and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Adient PLC 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 Adient PLC 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 Adient PLC i.e., Adient PLC and Kimco Realty go up and down completely randomly.

Pair Corralation between Adient PLC and Kimco Realty

Given the investment horizon of 90 days Adient PLC is expected to generate 2.27 times more return on investment than Kimco Realty. However, Adient PLC is 2.27 times more volatile than Kimco Realty. It trades about 0.29 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.02 per unit of risk. If you would invest  1,287  in Adient PLC on May 4, 2025 and sell it today you would earn a total of  853.00  from holding Adient PLC or generate 66.28% return on investment over 90 days.

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

Adient PLC  vs.  Kimco Realty

Adient PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Adient PLC are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Adient PLC unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kimco Realty

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kimco Realty are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Kimco Realty is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Adient PLC and Kimco Realty

The main advantage of trading using opposite Adient PLC and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adient PLC 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 Adient PLC 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.