Correlation Between New Residential and Macerich
Can any of the company-specific risk be diversified away by investing in both New Residential and Macerich 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 New Residential and Macerich into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Residential Investment and Macerich Co, you can compare the effects of market volatilities on New Residential and Macerich 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 New Residential with a short position of Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Residential and Macerich.
Diversification Opportunities for New Residential and Macerich
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Macerich is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment and Macerich Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich and New Residential 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 New Residential Investment are associated (or correlated) with Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of New Residential i.e., New Residential and Macerich go up and down completely randomly.
Pair Corralation between New Residential and Macerich
If you would invest 1,073 in New Residential Investment on September 13, 2024 and sell it today you would earn a total of 36.00 from holding New Residential Investment or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
New Residential Investment vs. Macerich Co
Performance |
| Timeline |
| New Residential Inve |
| Macerich |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
New Residential and Macerich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Residential and Macerich
The main advantage of trading using opposite New Residential and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Residential position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich's long position.| New Residential vs. Samsung Electronics Co | New Residential vs. Samsung Electronics Co | New Residential vs. Hyundai Motor | New Residential vs. Reliance Industries Ltd |
| Macerich vs. Sovereign Metals | Macerich vs. Wheaton Precious Metals | Macerich vs. Golden Metal Resources | Macerich vs. Europa Metals |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |