Correlation Between Federal Realty and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both Federal Realty and Mapletree Commercial 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 Federal Realty and Mapletree Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Realty Investment and Mapletree Commercial Trust, you can compare the effects of market volatilities on Federal Realty and Mapletree Commercial 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 Federal Realty with a short position of Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Realty and Mapletree Commercial.
Diversification Opportunities for Federal Realty and Mapletree Commercial
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Federal and Mapletree is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Federal Realty Investment and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial and Federal Realty 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 Federal Realty Investment are associated (or correlated) with Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of Federal Realty i.e., Federal Realty and Mapletree Commercial go up and down completely randomly.
Pair Corralation between Federal Realty and Mapletree Commercial
Considering the 90-day investment horizon Federal Realty Investment is expected to generate 0.42 times more return on investment than Mapletree Commercial. However, Federal Realty Investment is 2.36 times less risky than Mapletree Commercial. It trades about -0.03 of its potential returns per unit of risk. Mapletree Commercial Trust is currently generating about -0.22 per unit of risk. If you would invest 11,407 in Federal Realty Investment on September 14, 2024 and sell it today you would lose (59.00) from holding Federal Realty Investment or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Realty Investment vs. Mapletree Commercial Trust
Performance |
| Timeline |
| Federal Realty Investment |
| Mapletree Commercial |
Federal Realty and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Realty and Mapletree Commercial
The main advantage of trading using opposite Federal Realty and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Realty position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial's long position.| Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco Realty |
| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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