Correlation Between Retail Opportunity and Kite Realty

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

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

Diversification Opportunities for Retail Opportunity and Kite Realty

0.0

Correlation Coefficient

Retail Opportunity  Kite Realty

Pay attention - limited upside

The 3 months correlation between Retail and Kite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group and Retail Opportunity 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 Retail Opportunity Investments are associated (or correlated) with Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Retail Opportunity i.e., Retail Opportunity and Kite Realty go up and down completely randomly.

Pair Corralation between Retail Opportunity and Kite Realty

If you would invest  1,749  in Retail Opportunity Investments on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Retail Opportunity Investments or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Retail Opportunity Investments  vs.  Kite Realty Group

Retail Opportunity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Retail Opportunity Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Retail Opportunity is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Kite Realty Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kite Realty Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Kite Realty is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Retail Opportunity and Kite Realty

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

The idea behind Retail Opportunity Investments and Kite Realty Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.