Correlation Between Four Corners and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Four Corners and Tanger Factory 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 Tanger Factory 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 Tanger Factory Outlet, you can compare the effects of market volatilities on Four Corners and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Corners and Tanger Factory.
Diversification Opportunities for Four Corners and Tanger Factory
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Four and Tanger is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Four Corners Property and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Four Corners i.e., Four Corners and Tanger Factory go up and down completely randomly.
Pair Corralation between Four Corners and Tanger Factory
Given the investment horizon of 90 days Four Corners Property is expected to generate 1.14 times more return on investment than Tanger Factory. However, Four Corners is 1.14 times more volatile than Tanger Factory Outlet. It trades about 0.19 of its potential returns per unit of risk. Tanger Factory Outlet is currently generating about -0.16 per unit of risk. If you would invest 2,639 in Four Corners Property on October 20, 2024 and sell it today you would earn a total of 117.00 from holding Four Corners Property or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Four Corners Property vs. Tanger Factory Outlet
Performance |
| Timeline |
| Four Corners Property |
| Tanger Factory Outlet |
Four Corners and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Four Corners and Tanger Factory
The main advantage of trading using opposite Four Corners and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Corners position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.| Four Corners vs. Alpineome Property Trust | Four Corners vs. Rithm Property Trust | Four Corners vs. Kite Realty Group | Four Corners vs. Inventrust Properties Corp |
| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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