Correlation Between Federal Realty and National Retail
Can any of the company-specific risk be diversified away by investing in both Federal Realty and National Retail 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 National Retail 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 National Retail Properties, you can compare the effects of market volatilities on Federal Realty and National Retail 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 National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Realty and National Retail.
Diversification Opportunities for Federal Realty and National Retail
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Federal and National is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Federal Realty Investment and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop 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 National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of Federal Realty i.e., Federal Realty and National Retail go up and down completely randomly.
Pair Corralation between Federal Realty and National Retail
Considering the 90-day investment horizon Federal Realty Investment is expected to generate 1.16 times more return on investment than National Retail. However, Federal Realty is 1.16 times more volatile than National Retail Properties. It trades about 0.03 of its potential returns per unit of risk. National Retail Properties is currently generating about 0.02 per unit of risk. If you would invest 9,798 in Federal Realty Investment on August 27, 2024 and sell it today you would earn a total of 1,688 from holding Federal Realty Investment or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Realty Investment vs. National Retail Properties
Performance |
| Timeline |
| Federal Realty Investment |
| National Retail Prop |
Federal Realty and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Realty and National Retail
The main advantage of trading using opposite Federal Realty and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Realty position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.| Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco Realty |
| National Retail vs. Acadia Realty Trust | National Retail vs. Federal Realty Investment | National Retail vs. Realty Income | National Retail vs. Whitestone 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |