Correlation Between First Industrial and Indus Realty
Can any of the company-specific risk be diversified away by investing in both First Industrial and Indus 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 First Industrial and Indus Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and Indus Realty Trust, you can compare the effects of market volatilities on First Industrial and Indus 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 First Industrial with a short position of Indus Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Indus Realty.
Diversification Opportunities for First Industrial and Indus Realty
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Indus is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty and Indus Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indus Realty Trust and First Industrial 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 First Industrial Realty are associated (or correlated) with Indus Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indus Realty Trust has no effect on the direction of First Industrial i.e., First Industrial and Indus Realty go up and down completely randomly.
Pair Corralation between First Industrial and Indus Realty
If you would invest 5,357 in First Industrial Realty on August 28, 2024 and sell it today you would earn a total of 90.00 from holding First Industrial Realty or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
First Industrial Realty vs. Indus Realty Trust
Performance |
| Timeline |
| First Industrial Realty |
| Indus Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Industrial and Indus Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Indus Realty
The main advantage of trading using opposite First Industrial and Indus Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial position performs unexpectedly, Indus 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 Indus Realty will offset losses from the drop in Indus Realty's long position.| First Industrial vs. LXP Industrial Trust | First Industrial vs. Plymouth Industrial REIT | First Industrial vs. Global Self Storage | First Industrial vs. Terreno Realty |
| Indus Realty vs. Plymouth Industrial REIT | Indus Realty vs. First Industrial Realty | Indus Realty vs. Terreno Realty | Indus Realty vs. Rexford Industrial Realty |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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