Correlation Between EastGroup Properties and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both EastGroup Properties and Acadia Realty 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 EastGroup Properties and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EastGroup Properties and Acadia Realty Trust, you can compare the effects of market volatilities on EastGroup Properties and Acadia Realty 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 EastGroup Properties with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Acadia Realty.
Diversification Opportunities for EastGroup Properties and Acadia Realty
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EastGroup and Acadia is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust and EastGroup 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 EastGroup Properties are associated (or correlated) with Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and Acadia Realty go up and down completely randomly.
Pair Corralation between EastGroup Properties and Acadia Realty
Considering the 90-day investment horizon EastGroup Properties is expected to under-perform the Acadia Realty. In addition to that, EastGroup Properties is 1.2 times more volatile than Acadia Realty Trust. It trades about -0.11 of its total potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.13 per unit of volatility. If you would invest 2,460 in Acadia Realty Trust on August 27, 2024 and sell it today you would earn a total of 62.00 from holding Acadia Realty Trust or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EastGroup Properties vs. Acadia Realty Trust
Performance |
| Timeline |
| EastGroup Properties |
| Acadia Realty Trust |
EastGroup Properties and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EastGroup Properties and Acadia Realty
The main advantage of trading using opposite EastGroup Properties and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
| Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Retail Opportunity Investments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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