Correlation Between EastGroup Properties and Retail Opportunity
Can any of the company-specific risk be diversified away by investing in both EastGroup Properties and Retail Opportunity 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 Retail Opportunity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EastGroup Properties and Retail Opportunity Investments, you can compare the effects of market volatilities on EastGroup Properties and Retail Opportunity 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 Retail Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Retail Opportunity.
Diversification Opportunities for EastGroup Properties and Retail Opportunity
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EastGroup and Retail is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and Retail Opportunity Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Opportunity 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 Retail Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Opportunity has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and Retail Opportunity go up and down completely randomly.
Pair Corralation between EastGroup Properties and Retail Opportunity
Considering the 90-day investment horizon EastGroup Properties is expected to generate 10.21 times less return on investment than Retail Opportunity. But when comparing it to its historical volatility, EastGroup Properties is 1.55 times less risky than Retail Opportunity. It trades about 0.01 of its potential returns per unit of risk. Retail Opportunity Investments is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,232 in Retail Opportunity Investments on August 26, 2024 and sell it today you would earn a total of 505.00 from holding Retail Opportunity Investments or generate 40.99% 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. Retail Opportunity Investments
Performance |
| Timeline |
| EastGroup Properties |
| Retail Opportunity |
EastGroup Properties and Retail Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EastGroup Properties and Retail Opportunity
The main advantage of trading using opposite EastGroup Properties and Retail Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties position performs unexpectedly, Retail Opportunity 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 Retail Opportunity will offset losses from the drop in Retail Opportunity'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 |
| Retail Opportunity vs. Kite Realty Group | Retail Opportunity vs. Urban Edge Properties | Retail Opportunity 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |