Correlation Between Acadia Realty and Inventrust Properties
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Inventrust Properties 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 Inventrust Properties 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 Inventrust Properties Corp, you can compare the effects of market volatilities on Acadia Realty and Inventrust Properties 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 Inventrust Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Inventrust Properties.
Diversification Opportunities for Acadia Realty and Inventrust Properties
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acadia and Inventrust is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Inventrust Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventrust Properties 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 Inventrust Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventrust Properties has no effect on the direction of Acadia Realty i.e., Acadia Realty and Inventrust Properties go up and down completely randomly.
Pair Corralation between Acadia Realty and Inventrust Properties
Considering the 90-day investment horizon Acadia Realty Trust is expected to under-perform the Inventrust Properties. In addition to that, Acadia Realty is 1.52 times more volatile than Inventrust Properties Corp. It trades about -0.09 of its total potential returns per unit of risk. Inventrust Properties Corp is currently generating about 0.0 per unit of volatility. If you would invest 3,013 in Inventrust Properties Corp on November 1, 2024 and sell it today you would lose (5.00) from holding Inventrust Properties Corp or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Inventrust Properties Corp
Performance |
| Timeline |
| Acadia Realty Trust |
| Inventrust Properties |
Acadia Realty and Inventrust Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Inventrust Properties
The main advantage of trading using opposite Acadia Realty and Inventrust Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Inventrust Properties 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 Inventrust Properties will offset losses from the drop in Inventrust Properties' long position.| Acadia Realty vs. Rithm Property Trust | Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp |
| Inventrust Properties vs. Rithm Property Trust | Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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