Correlation Between Acadia Realty and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Urban Edge 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 Urban Edge 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 Urban Edge Properties, you can compare the effects of market volatilities on Acadia Realty and Urban Edge 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 Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Urban Edge.
Diversification Opportunities for Acadia Realty and Urban Edge
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Acadia and Urban is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge 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 Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Acadia Realty i.e., Acadia Realty and Urban Edge go up and down completely randomly.
Pair Corralation between Acadia Realty and Urban Edge
Considering the 90-day investment horizon Acadia Realty Trust is expected to generate 1.05 times more return on investment than Urban Edge. However, Acadia Realty is 1.05 times more volatile than Urban Edge Properties. It trades about 0.08 of its potential returns per unit of risk. Urban Edge Properties is currently generating about 0.07 per unit of risk. If you would invest 1,351 in Acadia Realty Trust on August 26, 2024 and sell it today you would earn a total of 1,171 from holding Acadia Realty Trust or generate 86.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Urban Edge Properties
Performance |
| Timeline |
| Acadia Realty Trust |
| Urban Edge Properties |
Acadia Realty and Urban Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Urban Edge
The main advantage of trading using opposite Acadia Realty and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Urban Edge 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 Urban Edge will offset losses from the drop in Urban Edge's long position.| Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Inventrust Properties Corp | Acadia Realty vs. Retail Opportunity Investments | Acadia Realty vs. Netstreit Corp |
| Urban Edge vs. Site Centers Corp | Urban Edge vs. Inventrust Properties Corp | Urban Edge vs. Retail Opportunity Investments | Urban Edge vs. Netstreit 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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