Correlation Between Artis REIT and British Land
Can any of the company-specific risk be diversified away by investing in both Artis REIT and British Land 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 Artis REIT and British Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artis REIT and British Land, you can compare the effects of market volatilities on Artis REIT and British Land 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 Artis REIT with a short position of British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artis REIT and British Land.
Diversification Opportunities for Artis REIT and British Land
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artis and British is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Artis REIT and British Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land and Artis REIT 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 Artis REIT are associated (or correlated) with British Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British Land has no effect on the direction of Artis REIT i.e., Artis REIT and British Land go up and down completely randomly.
Pair Corralation between Artis REIT and British Land
Assuming the 90 days horizon Artis REIT is expected to under-perform the British Land. But the otc stock apears to be less risky and, when comparing its historical volatility, Artis REIT is 1.61 times less risky than British Land. The otc stock trades about -0.4 of its potential returns per unit of risk. The British Land is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 491.00 in British Land on September 12, 2024 and sell it today you would lose (27.00) from holding British Land or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Artis REIT vs. British Land
Performance |
| Timeline |
| Artis REIT |
| British Land |
Artis REIT and British Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artis REIT and British Land
The main advantage of trading using opposite Artis REIT and British Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artis REIT position performs unexpectedly, British Land 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 British Land will offset losses from the drop in British Land's long position.| Artis REIT vs. Armada Hoffler Properties | Artis REIT vs. Ascott Residence Trust | Artis REIT vs. Armada Hflr Pr | Artis REIT vs. Modiv Inc |
| British Land vs. Global Net Lease, | British Land vs. VICI Properties | British Land vs. British Land | British Land vs. Highlands REIT |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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