Correlation Between Agree Realty and Terreno Realty
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Terreno Realty 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 Terreno Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Terreno Realty, you can compare the effects of market volatilities on Agree Realty and Terreno Realty 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 Terreno Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Terreno Realty.
Diversification Opportunities for Agree Realty and Terreno Realty
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agree and Terreno is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Terreno Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terreno Realty 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 Terreno Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terreno Realty has no effect on the direction of Agree Realty i.e., Agree Realty and Terreno Realty go up and down completely randomly.
Pair Corralation between Agree Realty and Terreno Realty
Considering the 90-day investment horizon Agree Realty is expected to generate 0.7 times more return on investment than Terreno Realty. However, Agree Realty is 1.42 times less risky than Terreno Realty. It trades about 0.19 of its potential returns per unit of risk. Terreno Realty is currently generating about -0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. Terreno Realty
Performance |
| Timeline |
| Agree Realty |
| Terreno Realty |
Agree Realty and Terreno Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Terreno Realty
The main advantage of trading using opposite Agree Realty and Terreno Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Terreno Realty 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 Terreno Realty will offset losses from the drop in Terreno Realty's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
| Terreno Realty vs. Plymouth Industrial REIT | Terreno Realty vs. EastGroup Properties | Terreno Realty vs. LXP Industrial Trust | Terreno Realty vs. First Industrial Realty |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |