Correlation Between Agree Realty and Ladenburg Thalmann
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Ladenburg Thalmann 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 Agree Realty and Ladenburg Thalmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Ladenburg Thalmann Financial, you can compare the effects of market volatilities on Agree Realty and Ladenburg Thalmann 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 Agree Realty with a short position of Ladenburg Thalmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Ladenburg Thalmann.
Diversification Opportunities for Agree Realty and Ladenburg Thalmann
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agree and Ladenburg is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Ladenburg Thalmann Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Thalmann and Agree 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 Agree Realty are associated (or correlated) with Ladenburg Thalmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Thalmann has no effect on the direction of Agree Realty i.e., Agree Realty and Ladenburg Thalmann go up and down completely randomly.
Pair Corralation between Agree Realty and Ladenburg Thalmann
Assuming the 90 days trading horizon Agree Realty is expected to generate 1.18 times less return on investment than Ladenburg Thalmann. But when comparing it to its historical volatility, Agree Realty is 3.69 times less risky than Ladenburg Thalmann. It trades about 0.05 of its potential returns per unit of risk. Ladenburg Thalmann Financial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,750 in Ladenburg Thalmann Financial on September 12, 2024 and sell it today you would lose (40.00) from holding Ladenburg Thalmann Financial or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 29.15% |
| Values | Daily Returns |
Agree Realty vs. Ladenburg Thalmann Financial
Performance |
| Timeline |
| Agree Realty |
| Ladenburg Thalmann |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agree Realty and Ladenburg Thalmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Ladenburg Thalmann
The main advantage of trading using opposite Agree Realty and Ladenburg Thalmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Ladenburg Thalmann 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 Ladenburg Thalmann will offset losses from the drop in Ladenburg Thalmann's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Vornado Realty Trust | Agree Realty vs. Rexford Industrial Realty | Agree Realty vs. Digital Realty Trust |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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