Correlation Between Netstreit Corp and Kimco Realty

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

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

Diversification Opportunities for Netstreit Corp and Kimco Realty

0.08

Correlation Coefficient

Netstreit Corp  Kimco Realty

Significant diversification

The 3 months correlation between Netstreit and Kimco is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Netstreit Corp and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Netstreit Corp 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 Netstreit Corp 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 Netstreit Corp i.e., Netstreit Corp and Kimco Realty go up and down completely randomly.

Pair Corralation between Netstreit Corp and Kimco Realty

Given the investment horizon of 90 days Netstreit Corp is expected to generate 53.03 times less return on investment than Kimco Realty. In addition to that, Netstreit Corp is 1.29 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 0.17 per unit of volatility. If you would invest  2,204  in Kimco Realty on August 15, 2024 and sell it today you would earn a total of  264.00  from holding Kimco Realty or generate 11.98% return on investment over 90 days.

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

Netstreit Corp  vs.  Kimco Realty

Netstreit Corp

Risk-Adjusted Performance

0 of 100

Weak

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

Kimco Realty

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kimco Realty are ranked lower than 13 (%) 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 December 2024.

Pair Trading with Netstreit Corp and Kimco Realty

The main advantage of trading using opposite Netstreit Corp and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netstreit Corp 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 Netstreit Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.