Correlation Between Kilroy Realty and Rexford Industrial

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Can any of the company-specific risk be diversified away by investing in both Kilroy Realty and Rexford Industrial 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 Kilroy Realty and Rexford Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kilroy Realty Corp and Rexford Industrial Realty, you can compare the effects of market volatilities on Kilroy Realty and Rexford Industrial 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 Kilroy Realty with a short position of Rexford Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilroy Realty and Rexford Industrial.

Diversification Opportunities for Kilroy Realty and Rexford Industrial

0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Kilroy and Rexford is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kilroy Realty Corp and Rexford Industrial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rexford Industrial Realty and Kilroy 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 Kilroy Realty Corp are associated (or correlated) with Rexford Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rexford Industrial Realty has no effect on the direction of Kilroy Realty i.e., Kilroy Realty and Rexford Industrial go up and down completely randomly.

Pair Corralation between Kilroy Realty and Rexford Industrial

Considering the 90-day investment horizon Kilroy Realty Corp is expected to generate 0.96 times more return on investment than Rexford Industrial. However, Kilroy Realty Corp is 1.04 times less risky than Rexford Industrial. It trades about 0.06 of its potential returns per unit of risk. Rexford Industrial Realty is currently generating about 0.03 per unit of risk. If you would invest  4,106  in Kilroy Realty Corp on August 29, 2025 and sell it today you would earn a total of  204.00  from holding Kilroy Realty Corp or generate 4.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kilroy Realty Corp  vs.  Rexford Industrial Realty

 Performance 
       Timeline  
Kilroy Realty Corp 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Kilroy Realty Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Kilroy Realty is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Rexford Industrial Realty 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Rexford Industrial Realty are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Rexford Industrial is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Kilroy Realty and Rexford Industrial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kilroy Realty and Rexford Industrial

The main advantage of trading using opposite Kilroy Realty and Rexford Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilroy Realty position performs unexpectedly, Rexford Industrial 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 Rexford Industrial will offset losses from the drop in Rexford Industrial's long position.
The idea behind Kilroy Realty Corp and Rexford Industrial 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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