Correlation Between Cousins Properties and First Industrial
Can any of the company-specific risk be diversified away by investing in both Cousins Properties and First Industrial 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 Cousins Properties and First Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cousins Properties Incorporated and First Industrial Realty, you can compare the effects of market volatilities on Cousins Properties and First Industrial 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 Cousins Properties with a short position of First Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cousins Properties and First Industrial.
Diversification Opportunities for Cousins Properties and First Industrial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cousins and First is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cousins Properties Incorporate and First Industrial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Industrial Realty and Cousins Properties 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 Cousins Properties Incorporated are associated (or correlated) with First Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Industrial Realty has no effect on the direction of Cousins Properties i.e., Cousins Properties and First Industrial go up and down completely randomly.
Pair Corralation between Cousins Properties and First Industrial
Considering the 90-day investment horizon Cousins Properties is expected to generate 23.85 times less return on investment than First Industrial. In addition to that, Cousins Properties is 1.21 times more volatile than First Industrial Realty. It trades about 0.01 of its total potential returns per unit of risk. First Industrial Realty is currently generating about 0.22 per unit of volatility. If you would invest 5,022 in First Industrial Realty on November 4, 2024 and sell it today you would earn a total of 333.00 from holding First Industrial Realty or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Cousins Properties Incorporate vs. First Industrial Realty
Performance |
| Timeline |
| Cousins Properties |
| First Industrial Realty |
Cousins Properties and First Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cousins Properties and First Industrial
The main advantage of trading using opposite Cousins Properties and First Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cousins Properties position performs unexpectedly, First Industrial 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 First Industrial will offset losses from the drop in First Industrial's long position.| Cousins Properties vs. Highwoods Properties | Cousins Properties vs. Douglas Emmett | Cousins Properties vs. Equity Commonwealth | Cousins Properties vs. Kilroy Realty Corp |
| First Industrial vs. LXP Industrial Trust | First Industrial vs. Plymouth Industrial REIT | First Industrial vs. Global Self Storage | First Industrial vs. Terreno 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance |