Correlation Between Acadia Realty and Apple Hospitality
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Apple Hospitality 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 Acadia Realty and Apple Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadia Realty Trust and Apple Hospitality REIT, you can compare the effects of market volatilities on Acadia Realty and Apple Hospitality 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 Acadia Realty with a short position of Apple Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Apple Hospitality.
Diversification Opportunities for Acadia Realty and Apple Hospitality
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acadia and Apple is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Apple Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Hospitality REIT and Acadia 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 Acadia Realty Trust are associated (or correlated) with Apple Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Hospitality REIT has no effect on the direction of Acadia Realty i.e., Acadia Realty and Apple Hospitality go up and down completely randomly.
Pair Corralation between Acadia Realty and Apple Hospitality
Considering the 90-day investment horizon Acadia Realty Trust is expected to generate 1.07 times more return on investment than Apple Hospitality. However, Acadia Realty is 1.07 times more volatile than Apple Hospitality REIT. It trades about 0.09 of its potential returns per unit of risk. Apple Hospitality REIT is currently generating about 0.01 per unit of risk. If you would invest 1,430 in Acadia Realty Trust on August 27, 2024 and sell it today you would earn a total of 1,092 from holding Acadia Realty Trust or generate 76.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Apple Hospitality REIT
Performance |
| Timeline |
| Acadia Realty Trust |
| Apple Hospitality REIT |
Acadia Realty and Apple Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Apple Hospitality
The main advantage of trading using opposite Acadia Realty and Apple Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Apple Hospitality 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 Apple Hospitality will offset losses from the drop in Apple Hospitality's long position.| Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Retail Opportunity Investments |
| Apple Hospitality vs. Park Hotels Resorts | Apple Hospitality vs. Diamondrock Hospitality | Apple Hospitality vs. Ryman Hospitality Properties | Apple Hospitality vs. Pebblebrook Hotel 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |