Correlation Between Alexander Baldwin and Macerich
Can any of the company-specific risk be diversified away by investing in both Alexander Baldwin and Macerich 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 Alexander Baldwin and Macerich into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexander Baldwin Holdings and Macerich Company, you can compare the effects of market volatilities on Alexander Baldwin and Macerich 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 Alexander Baldwin with a short position of Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexander Baldwin and Macerich.
Diversification Opportunities for Alexander Baldwin and Macerich
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alexander and Macerich is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Alexander Baldwin Holdings and Macerich Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich and Alexander Baldwin 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 Alexander Baldwin Holdings are associated (or correlated) with Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of Alexander Baldwin i.e., Alexander Baldwin and Macerich go up and down completely randomly.
Pair Corralation between Alexander Baldwin and Macerich
Given the investment horizon of 90 days Alexander Baldwin is expected to generate 1.47 times less return on investment than Macerich. But when comparing it to its historical volatility, Alexander Baldwin Holdings is 1.44 times less risky than Macerich. It trades about 0.21 of its potential returns per unit of risk. Macerich Company is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Macerich Company on August 25, 2024 and sell it today you would earn a total of 152.00 from holding Macerich Company or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alexander Baldwin Holdings vs. Macerich Company
Performance |
| Timeline |
| Alexander Baldwin |
| Macerich |
Alexander Baldwin and Macerich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexander Baldwin and Macerich
The main advantage of trading using opposite Alexander Baldwin and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexander Baldwin position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich's long position.| Alexander Baldwin vs. Saul Centers | Alexander Baldwin vs. Urban Edge Properties | Alexander Baldwin vs. Site Centers Corp | Alexander Baldwin vs. Kite Realty Group |
| Macerich vs. Site Centers Corp | Macerich vs. Inventrust Properties Corp | Macerich vs. Retail Opportunity Investments | Macerich 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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