Correlation Between BRT Realty and Kimco Realty

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

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

Diversification Opportunities for BRT Realty and Kimco Realty

0.25

Correlation Coefficient

BRT Realty  Kimco Realty

Modest diversification

The 3 months correlation between BRT and Kimco is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding BRT Realty Trust and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and BRT 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 BRT Realty Trust 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 BRT Realty i.e., BRT Realty and Kimco Realty go up and down completely randomly.

Pair Corralation between BRT Realty and Kimco Realty

Considering the 90-day investment horizon BRT Realty is expected to generate 43.11 times less return on investment than Kimco Realty. In addition to that, BRT Realty is 1.21 times more volatile than Kimco Realty. It trades about 0.0 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.06 per unit of volatility. If you would invest  2,040  in Kimco Realty on May 7, 2025 and sell it today you would earn a total of  89.00  from holding Kimco Realty or generate 4.36% return on investment over 90 days.

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

BRT Realty Trust  vs.  Kimco Realty

BRT Realty Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days BRT Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, BRT Realty is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Kimco Realty

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Kimco Realty are ranked lower than 4 (%) 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 BRT Realty and Kimco Realty

The main advantage of trading using opposite BRT Realty and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRT Realty 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 BRT Realty Trust 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.