Correlation Between Saul Centers and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Saul Centers and Acadia 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 Saul Centers and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saul Centers and Acadia Realty Trust, you can compare the effects of market volatilities on Saul Centers and Acadia 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 Saul Centers with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saul Centers and Acadia Realty.
Diversification Opportunities for Saul Centers and Acadia Realty
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saul and Acadia is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust and Saul Centers 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 Saul Centers are associated (or correlated) with Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Saul Centers i.e., Saul Centers and Acadia Realty go up and down completely randomly.
Pair Corralation between Saul Centers and Acadia Realty
Assuming the 90 days trading horizon Saul Centers is expected to generate 1.0 times more return on investment than Acadia Realty. However, Saul Centers is 1.0 times less risky than Acadia Realty. It trades about -0.1 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about -0.12 per unit of risk. If you would invest 2,288 in Saul Centers on November 4, 2024 and sell it today you would lose (153.00) from holding Saul Centers or give up 6.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saul Centers vs. Acadia Realty Trust
Performance |
| Timeline |
| Saul Centers |
| Acadia Realty Trust |
Saul Centers and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saul Centers and Acadia Realty
The main advantage of trading using opposite Saul Centers and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saul Centers position performs unexpectedly, Acadia 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| Saul Centers vs. Saul Centers | Saul Centers vs. Braemar Hotels Resorts | Saul Centers vs. Armada Hoffler Properties |
| Acadia Realty vs. Rithm Property Trust | Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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