Correlation Between Acadia Realty and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and AptarGroup 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 AptarGroup 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 AptarGroup, you can compare the effects of market volatilities on Acadia Realty and AptarGroup 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 AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and AptarGroup.
Diversification Opportunities for Acadia Realty and AptarGroup
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Acadia and AptarGroup is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup 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 AptarGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptarGroup has no effect on the direction of Acadia Realty i.e., Acadia Realty and AptarGroup go up and down completely randomly.
Pair Corralation between Acadia Realty and AptarGroup
Considering the 90-day investment horizon Acadia Realty Trust is expected to generate 1.4 times more return on investment than AptarGroup. However, Acadia Realty is 1.4 times more volatile than AptarGroup. It trades about 0.17 of its potential returns per unit of risk. AptarGroup is currently generating about 0.13 per unit of risk. If you would invest 1,376 in Acadia Realty Trust on August 26, 2024 and sell it today you would earn a total of 1,146 from holding Acadia Realty Trust or generate 83.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. AptarGroup
Performance |
| Timeline |
| Acadia Realty Trust |
| AptarGroup |
Acadia Realty and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and AptarGroup
The main advantage of trading using opposite Acadia Realty and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, AptarGroup 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 AptarGroup will offset losses from the drop in AptarGroup's long position.| Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Inventrust Properties Corp | Acadia Realty vs. Retail Opportunity Investments | Acadia Realty vs. Netstreit Corp |
| AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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