Correlation Between Acadia Realty and Pennsylvania Real
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Pennsylvania Real 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 Pennsylvania Real 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 Pennsylvania Real Estate, you can compare the effects of market volatilities on Acadia Realty and Pennsylvania Real 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 Pennsylvania Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Pennsylvania Real.
Diversification Opportunities for Acadia Realty and Pennsylvania Real
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acadia and Pennsylvania is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Pennsylvania Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pennsylvania Real Estate 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 Pennsylvania Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pennsylvania Real Estate has no effect on the direction of Acadia Realty i.e., Acadia Realty and Pennsylvania Real go up and down completely randomly.
Pair Corralation between Acadia Realty and Pennsylvania Real
If you would invest 2,449 in Acadia Realty Trust on September 1, 2024 and sell it today you would earn a total of 136.00 from holding Acadia Realty Trust or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Acadia Realty Trust vs. Pennsylvania Real Estate
Performance |
| Timeline |
| Acadia Realty Trust |
| Pennsylvania Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acadia Realty and Pennsylvania Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Pennsylvania Real
The main advantage of trading using opposite Acadia Realty and Pennsylvania Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Pennsylvania Real 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 Pennsylvania Real will offset losses from the drop in Pennsylvania Real's long position.| Acadia Realty vs. Federal Realty Investment | Acadia Realty vs. National Retail Properties | Acadia Realty vs. Kimco Realty |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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