Correlation Between Acadia Realty and St Joe
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and St Joe 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 St Joe 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 St Joe Company, you can compare the effects of market volatilities on Acadia Realty and St Joe 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 St Joe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and St Joe.
Diversification Opportunities for Acadia Realty and St Joe
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acadia and JOE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and St Joe Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Joe Company 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 St Joe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Joe Company has no effect on the direction of Acadia Realty i.e., Acadia Realty and St Joe go up and down completely randomly.
Pair Corralation between Acadia Realty and St Joe
Considering the 90-day investment horizon Acadia Realty Trust is expected to generate 0.75 times more return on investment than St Joe. However, Acadia Realty Trust is 1.33 times less risky than St Joe. It trades about 0.13 of its potential returns per unit of risk. St Joe Company is currently generating about 0.03 per unit of risk. If you would invest 1,348 in Acadia Realty Trust on August 31, 2024 and sell it today you would earn a total of 1,237 from holding Acadia Realty Trust or generate 91.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. St Joe Company
Performance |
| Timeline |
| Acadia Realty Trust |
| St Joe Company |
Acadia Realty and St Joe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and St Joe
The main advantage of trading using opposite Acadia Realty and St Joe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, St Joe 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 St Joe will offset losses from the drop in St Joe's long position.| Acadia Realty vs. Federal Realty Investment | Acadia Realty vs. Macerich Company | Acadia Realty vs. National Retail Properties | Acadia Realty vs. Kimco Realty |
| St Joe vs. Stratus Properties | St Joe vs. Mitsui Fudosan Co | St Joe vs. New World Development | St Joe vs. Comstock Holding Companies |
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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