Correlation Between Capital Counties and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Capital Counties and Tanger Factory 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 Capital Counties and Tanger Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Counties Properties and Tanger Factory Outlet, you can compare the effects of market volatilities on Capital Counties and Tanger Factory 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 Capital Counties with a short position of Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Counties and Tanger Factory.
Diversification Opportunities for Capital Counties and Tanger Factory
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Tanger is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Capital Counties Properties and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet and Capital Counties 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 Capital Counties Properties are associated (or correlated) with Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Capital Counties i.e., Capital Counties and Tanger Factory go up and down completely randomly.
Pair Corralation between Capital Counties and Tanger Factory
Assuming the 90 days horizon Capital Counties is expected to generate 1.79 times less return on investment than Tanger Factory. In addition to that, Capital Counties is 1.25 times more volatile than Tanger Factory Outlet. It trades about 0.04 of its total potential returns per unit of risk. Tanger Factory Outlet is currently generating about 0.09 per unit of volatility. If you would invest 1,617 in Tanger Factory Outlet on August 29, 2024 and sell it today you would earn a total of 1,791 from holding Tanger Factory Outlet or generate 110.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Counties Properties vs. Tanger Factory Outlet
Performance |
| Timeline |
| Capital Counties Pro |
| Tanger Factory Outlet |
Capital Counties and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Counties and Tanger Factory
The main advantage of trading using opposite Capital Counties and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Counties position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.| Capital Counties vs. Dalata Hotel Group | Capital Counties vs. MELIA HOTELS | Capital Counties vs. Sunstone Hotel Investors | Capital Counties vs. DXC Technology Co |
| Tanger Factory vs. HomeToGo SE | Tanger Factory vs. Corporate Office Properties | Tanger Factory vs. PSI Software AG | Tanger Factory vs. American Homes 4 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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