Correlation Between AMREP and Trinity Place
Can any of the company-specific risk be diversified away by investing in both AMREP and Trinity Place 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 AMREP and Trinity Place into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and Trinity Place Holdings, you can compare the effects of market volatilities on AMREP and Trinity Place 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 AMREP with a short position of Trinity Place. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Trinity Place.
Diversification Opportunities for AMREP and Trinity Place
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMREP and Trinity is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Trinity Place Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Place Holdings and AMREP 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 AMREP are associated (or correlated) with Trinity Place. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Place Holdings has no effect on the direction of AMREP i.e., AMREP and Trinity Place go up and down completely randomly.
Pair Corralation between AMREP and Trinity Place
If you would invest 2,210 in AMREP on September 3, 2024 and sell it today you would earn a total of 1,394 from holding AMREP or generate 63.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
AMREP vs. Trinity Place Holdings
Performance |
| Timeline |
| AMREP |
| Trinity Place Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMREP and Trinity Place Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and Trinity Place
The main advantage of trading using opposite AMREP and Trinity Place positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, Trinity Place 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 Trinity Place will offset losses from the drop in Trinity Place's long position.| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
| Trinity Place vs. Xinyuan Real Estate | Trinity Place vs. AMREP | Trinity Place vs. Alset Ehome International | Trinity Place vs. Landsea Homes 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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