Correlation Between Acadia Realty and Logistic Properties
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Logistic 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 Logistic 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 Logistic Properties of, you can compare the effects of market volatilities on Acadia Realty and Logistic 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 Logistic Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Logistic Properties.
Diversification Opportunities for Acadia Realty and Logistic Properties
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acadia and Logistic is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Logistic Properties of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logistic 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 Logistic Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logistic Properties has no effect on the direction of Acadia Realty i.e., Acadia Realty and Logistic Properties go up and down completely randomly.
Pair Corralation between Acadia Realty and Logistic Properties
Considering the 90-day investment horizon Acadia Realty is expected to generate 17.79 times less return on investment than Logistic Properties. But when comparing it to its historical volatility, Acadia Realty Trust is 42.31 times less risky than Logistic Properties. It trades about 0.19 of its potential returns per unit of risk. Logistic Properties of is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 668.00 in Logistic Properties of on August 27, 2024 and sell it today you would lose (52.00) from holding Logistic Properties of or give up 7.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.96% |
| Values | Daily Returns |
Acadia Realty Trust vs. Logistic Properties of
Performance |
| Timeline |
| Acadia Realty Trust |
| Logistic Properties |
Acadia Realty and Logistic Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Logistic Properties
The main advantage of trading using opposite Acadia Realty and Logistic Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Logistic 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 Logistic Properties will offset losses from the drop in Logistic Properties' 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 |
| Logistic Properties vs. Broadstone Net Lease | Logistic Properties vs. Armada Hflr Pr | Logistic Properties vs. Brightspire Capital | Logistic Properties vs. Safehold |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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