Correlation Between Acadia Realty and RPT Realty
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and RPT Realty 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 RPT Realty 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 RPT Realty, you can compare the effects of market volatilities on Acadia Realty and RPT Realty 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 RPT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and RPT Realty.
Diversification Opportunities for Acadia Realty and RPT Realty
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acadia and RPT is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and RPT Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPT Realty 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 RPT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPT Realty has no effect on the direction of Acadia Realty i.e., Acadia Realty and RPT Realty go up and down completely randomly.
Pair Corralation between Acadia Realty and RPT Realty
If you would invest 2,460 in Acadia Realty Trust on August 27, 2024 and sell it today you would earn a total of 62.00 from holding Acadia Realty Trust or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Acadia Realty Trust vs. RPT Realty
Performance |
| Timeline |
| Acadia Realty Trust |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acadia Realty and RPT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and RPT Realty
The main advantage of trading using opposite Acadia Realty and RPT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, RPT Realty 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 RPT Realty will offset losses from the drop in RPT Realty's 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 |
| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |