Correlation Between Smart REIT and Inventrust Properties
Can any of the company-specific risk be diversified away by investing in both Smart REIT and Inventrust 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 Smart REIT and Inventrust Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart REIT and Inventrust Properties Corp, you can compare the effects of market volatilities on Smart REIT and Inventrust 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 Smart REIT with a short position of Inventrust Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart REIT and Inventrust Properties.
Diversification Opportunities for Smart REIT and Inventrust Properties
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Smart and Inventrust is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Smart REIT and Inventrust Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventrust Properties and Smart REIT 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 Smart REIT are associated (or correlated) with Inventrust Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventrust Properties has no effect on the direction of Smart REIT i.e., Smart REIT and Inventrust Properties go up and down completely randomly.
Pair Corralation between Smart REIT and Inventrust Properties
Assuming the 90 days horizon Smart REIT is expected to generate 2.83 times less return on investment than Inventrust Properties. In addition to that, Smart REIT is 1.62 times more volatile than Inventrust Properties Corp. It trades about 0.02 of its total potential returns per unit of risk. Inventrust Properties Corp is currently generating about 0.1 per unit of volatility. If you would invest 2,418 in Inventrust Properties Corp on August 28, 2024 and sell it today you would earn a total of 646.00 from holding Inventrust Properties Corp or generate 26.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.61% |
| Values | Daily Returns |
Smart REIT vs. Inventrust Properties Corp
Performance |
| Timeline |
| Smart REIT |
| Inventrust Properties |
Smart REIT and Inventrust Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart REIT and Inventrust Properties
The main advantage of trading using opposite Smart REIT and Inventrust Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart REIT position performs unexpectedly, Inventrust 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 Inventrust Properties will offset losses from the drop in Inventrust Properties' long position.| Smart REIT vs. Firm Capital Property | Smart REIT vs. CT Real Estate | Smart REIT vs. Slate Grocery REIT | Smart REIT vs. Phillips Edison Co |
| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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