Correlation Between Agree Realty and Equity Lifestyle
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Equity Lifestyle 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 Equity Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Equity Lifestyle Properties, you can compare the effects of market volatilities on Agree Realty and Equity Lifestyle 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 Equity Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Equity Lifestyle.
Diversification Opportunities for Agree Realty and Equity Lifestyle
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Agree and Equity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Equity Lifestyle Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Lifestyle Pro 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 Equity Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Lifestyle Pro has no effect on the direction of Agree Realty i.e., Agree Realty and Equity Lifestyle go up and down completely randomly.
Pair Corralation between Agree Realty and Equity Lifestyle
Considering the 90-day investment horizon Agree Realty is expected to generate 0.95 times more return on investment than Equity Lifestyle. However, Agree Realty is 1.05 times less risky than Equity Lifestyle. It trades about 0.08 of its potential returns per unit of risk. Equity Lifestyle Properties is currently generating about 0.01 per unit of risk. If you would invest 5,777 in Agree Realty on October 24, 2024 and sell it today you would earn a total of 1,376 from holding Agree Realty or generate 23.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. Equity Lifestyle Properties
Performance |
| Timeline |
| Agree Realty |
| Equity Lifestyle Pro |
Agree Realty and Equity Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Equity Lifestyle
The main advantage of trading using opposite Agree Realty and Equity Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Equity Lifestyle 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 Equity Lifestyle will offset losses from the drop in Equity Lifestyle's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
| Equity Lifestyle vs. UMH Properties | Equity Lifestyle vs. UDR Inc | Equity Lifestyle vs. AvalonBay Communities | Equity Lifestyle vs. Nexpoint Residential 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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