Correlation Between Four Corners and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Four Corners and Regency Centers 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 Four Corners and Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Four Corners Property and Regency Centers, you can compare the effects of market volatilities on Four Corners and Regency Centers 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 Four Corners with a short position of Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Corners and Regency Centers.
Diversification Opportunities for Four Corners and Regency Centers
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Four and Regency is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Four Corners Property and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers and Four Corners 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 Four Corners Property are associated (or correlated) with Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Four Corners i.e., Four Corners and Regency Centers go up and down completely randomly.
Pair Corralation between Four Corners and Regency Centers
Given the investment horizon of 90 days Four Corners is expected to generate 1.34 times less return on investment than Regency Centers. In addition to that, Four Corners is 1.03 times more volatile than Regency Centers. It trades about 0.05 of its total potential returns per unit of risk. Regency Centers is currently generating about 0.07 per unit of volatility. If you would invest 5,699 in Regency Centers on August 31, 2024 and sell it today you would earn a total of 1,860 from holding Regency Centers or generate 32.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Four Corners Property vs. Regency Centers
Performance |
| Timeline |
| Four Corners Property |
| Regency Centers |
Four Corners and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Four Corners and Regency Centers
The main advantage of trading using opposite Four Corners and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Corners position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| Four Corners vs. Alpineome Property Trust | Four Corners vs. Kite Realty Group | Four Corners vs. Inventrust Properties Corp | Four Corners vs. Kimco Realty |
| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Getty Realty | Regency Centers vs. Site Centers Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |