Correlation Between Camden Property and Sun Communities
Can any of the company-specific risk be diversified away by investing in both Camden Property and Sun Communities 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 Camden Property and Sun Communities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camden Property Trust and Sun Communities, you can compare the effects of market volatilities on Camden Property and Sun Communities 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 Camden Property with a short position of Sun Communities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camden Property and Sun Communities.
Diversification Opportunities for Camden Property and Sun Communities
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Camden and Sun is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Camden Property Trust and Sun Communities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Communities and Camden Property 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 Camden Property Trust are associated (or correlated) with Sun Communities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Communities has no effect on the direction of Camden Property i.e., Camden Property and Sun Communities go up and down completely randomly.
Pair Corralation between Camden Property and Sun Communities
Considering the 90-day investment horizon Camden Property Trust is expected to generate 0.74 times more return on investment than Sun Communities. However, Camden Property Trust is 1.35 times less risky than Sun Communities. It trades about 0.15 of its potential returns per unit of risk. Sun Communities is currently generating about 0.07 per unit of risk. If you would invest 10,181 in Camden Property Trust on August 30, 2024 and sell it today you would earn a total of 2,395 from holding Camden Property Trust or generate 23.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camden Property Trust vs. Sun Communities
Performance |
| Timeline |
| Camden Property Trust |
| Sun Communities |
Camden Property and Sun Communities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camden Property and Sun Communities
The main advantage of trading using opposite Camden Property and Sun Communities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camden Property position performs unexpectedly, Sun Communities 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 Sun Communities will offset losses from the drop in Sun Communities' long position.| Camden Property vs. Veris Residential | Camden Property vs. Clipper Realty | Camden Property vs. UDR Inc | Camden Property vs. Equity Lifestyle Properties |
| Sun Communities vs. Clipper Realty | Sun Communities vs. UDR Inc | Sun Communities vs. UMH Properties | Sun Communities vs. Apartment Investment and |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |