Correlation Between Americold Realty and EastGroup Properties
Can any of the company-specific risk be diversified away by investing in both Americold Realty and EastGroup Properties 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 Americold Realty and EastGroup Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americold Realty Trust and EastGroup Properties, you can compare the effects of market volatilities on Americold Realty and EastGroup Properties 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 Americold Realty with a short position of EastGroup Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americold Realty and EastGroup Properties.
Diversification Opportunities for Americold Realty and EastGroup Properties
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Americold and EastGroup is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Americold Realty Trust and EastGroup Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EastGroup Properties and Americold Realty 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 Americold Realty Trust are associated (or correlated) with EastGroup Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EastGroup Properties has no effect on the direction of Americold Realty i.e., Americold Realty and EastGroup Properties go up and down completely randomly.
Pair Corralation between Americold Realty and EastGroup Properties
Given the investment horizon of 90 days Americold Realty Trust is expected to under-perform the EastGroup Properties. In addition to that, Americold Realty is 2.29 times more volatile than EastGroup Properties. It trades about -0.15 of its total potential returns per unit of risk. EastGroup Properties is currently generating about -0.07 per unit of volatility. If you would invest 17,648 in EastGroup Properties on August 27, 2024 and sell it today you would lose (311.00) from holding EastGroup Properties or give up 1.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Americold Realty Trust vs. EastGroup Properties
Performance |
Timeline |
Americold Realty Trust |
EastGroup Properties |
Americold Realty and EastGroup Properties Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Americold Realty and EastGroup Properties
The main advantage of trading using opposite Americold Realty and EastGroup Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americold Realty position performs unexpectedly, EastGroup Properties 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 EastGroup Properties will offset losses from the drop in EastGroup Properties' long position.Americold Realty vs. Rexford Industrial Realty | Americold Realty vs. Terreno Realty | Americold Realty vs. First Industrial Realty | Americold Realty vs. Plymouth Industrial REIT |
EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |