Correlation Between Agree Realty and Seritage Growth
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Seritage Growth 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 Seritage Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Seritage Growth Properties, you can compare the effects of market volatilities on Agree Realty and Seritage Growth 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 Seritage Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Seritage Growth.
Diversification Opportunities for Agree Realty and Seritage Growth
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agree and Seritage is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Seritage Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seritage Growth Prop 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 Seritage Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seritage Growth Prop has no effect on the direction of Agree Realty i.e., Agree Realty and Seritage Growth go up and down completely randomly.
Pair Corralation between Agree Realty and Seritage Growth
Considering the 90-day investment horizon Agree Realty is expected to generate 0.3 times more return on investment than Seritage Growth. However, Agree Realty is 3.33 times less risky than Seritage Growth. It trades about 0.24 of its potential returns per unit of risk. Seritage Growth Properties is currently generating about -0.05 per unit of risk. If you would invest 5,796 in Agree Realty on August 24, 2024 and sell it today you would earn a total of 1,916 from holding Agree Realty or generate 33.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. Seritage Growth Properties
Performance |
| Timeline |
| Agree Realty |
| Seritage Growth Prop |
Agree Realty and Seritage Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Seritage Growth
The main advantage of trading using opposite Agree Realty and Seritage Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Seritage Growth 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 Seritage Growth will offset losses from the drop in Seritage Growth's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
| Seritage Growth vs. Site Centers Corp | Seritage Growth vs. Kite Realty Group | Seritage Growth vs. Retail Opportunity Investments | Seritage Growth vs. Inventrust Properties Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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