Correlation Between Agree Realty and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Tanger Factory 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 Tanger Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Tanger Factory Outlet, you can compare the effects of market volatilities on Agree Realty and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Tanger Factory.
Diversification Opportunities for Agree Realty and Tanger Factory
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agree and Tanger is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Agree Realty i.e., Agree Realty and Tanger Factory go up and down completely randomly.
Pair Corralation between Agree Realty and Tanger Factory
Considering the 90-day investment horizon Agree Realty is expected to generate 0.74 times more return on investment than Tanger Factory. However, Agree Realty is 1.35 times less risky than Tanger Factory. It trades about 0.19 of its potential returns per unit of risk. Tanger Factory Outlet is currently generating about 0.11 per unit of risk. If you would invest 5,329 in Agree Realty on August 27, 2024 and sell it today you would earn a total of 2,316 from holding Agree Realty or generate 43.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. Tanger Factory Outlet
Performance |
| Timeline |
| Agree Realty |
| Tanger Factory Outlet |
Agree Realty and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Tanger Factory
The main advantage of trading using opposite Agree Realty and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |