Correlation Between Alexandria Real and Kimco Realty

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

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

Diversification Opportunities for Alexandria Real and Kimco Realty

0.82

Correlation Coefficient

Alexandria Real  Kimco Realty

Very poor diversification

The 3 months correlation between Alexandria and Kimco is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Alexandria Real Estate and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Alexandria Real 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 Alexandria Real Estate 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 Alexandria Real i.e., Alexandria Real and Kimco Realty go up and down completely randomly.

Pair Corralation between Alexandria Real and Kimco Realty

Considering the 90-day investment horizon Alexandria Real Estate is expected to generate 1.39 times more return on investment than Kimco Realty. However, Alexandria Real is 1.39 times more volatile than Kimco Realty. It trades about 0.09 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.04 per unit of risk. If you would invest  7,060  in Alexandria Real Estate on May 7, 2025 and sell it today you would earn a total of  652.00  from holding Alexandria Real Estate or generate 9.24% return on investment over 90 days.

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

Alexandria Real Estate  vs.  Kimco Realty

Alexandria Real Estate

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Alexandria Real Estate are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Alexandria Real may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Kimco Realty

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Kimco Realty are ranked lower than 3 (%) 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 Alexandria Real and Kimco Realty

The main advantage of trading using opposite Alexandria Real and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexandria Real 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 Alexandria Real Estate 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.