Correlation Between First Industrial and Virtus Real
Can any of the company-specific risk be diversified away by investing in both First Industrial and Virtus Real 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 Virtus Real 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 Virtus Real Estate, you can compare the effects of market volatilities on First Industrial and Virtus Real 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 Virtus Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Virtus Real.
Diversification Opportunities for First Industrial and Virtus Real
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Virtus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty and Virtus Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Real Estate 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 Virtus Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Real Estate has no effect on the direction of First Industrial i.e., First Industrial and Virtus Real go up and down completely randomly.
Pair Corralation between First Industrial and Virtus Real
Allowing for the 90-day total investment horizon First Industrial Realty is expected to generate 0.61 times more return on investment than Virtus Real. However, First Industrial Realty is 1.64 times less risky than Virtus Real. It trades about -0.29 of its potential returns per unit of risk. Virtus Real Estate is currently generating about -0.33 per unit of risk. If you would invest 5,206 in First Industrial Realty on October 15, 2024 and sell it today you would lose (360.00) from holding First Industrial Realty or give up 6.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Industrial Realty vs. Virtus Real Estate
Performance |
| Timeline |
| First Industrial Realty |
| Virtus Real Estate |
First Industrial and Virtus Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Virtus Real
The main advantage of trading using opposite First Industrial and Virtus Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial position performs unexpectedly, Virtus Real 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 Virtus Real will offset losses from the drop in Virtus Real'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 |
| Virtus Real vs. Siit Equity Factor | Virtus Real vs. Dws Equity Sector | Virtus Real vs. Quantitative Longshort Equity | Virtus Real vs. Artisan Select Equity |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |