Correlation Between Highlands REIT and Artis REIT
Can any of the company-specific risk be diversified away by investing in both Highlands REIT and Artis REIT 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 Highlands REIT and Artis REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highlands REIT and Artis REIT, you can compare the effects of market volatilities on Highlands REIT and Artis REIT 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 Highlands REIT with a short position of Artis REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highlands REIT and Artis REIT.
Diversification Opportunities for Highlands REIT and Artis REIT
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Highlands and Artis is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Highlands REIT and Artis REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis REIT and Highlands REIT 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 Highlands REIT are associated (or correlated) with Artis REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis REIT has no effect on the direction of Highlands REIT i.e., Highlands REIT and Artis REIT go up and down completely randomly.
Pair Corralation between Highlands REIT and Artis REIT
Given the investment horizon of 90 days Highlands REIT is expected to generate 94.57 times more return on investment than Artis REIT. However, Highlands REIT is 94.57 times more volatile than Artis REIT. It trades about 0.25 of its potential returns per unit of risk. Artis REIT is currently generating about 0.05 per unit of risk. If you would invest 3.71 in Highlands REIT on December 2, 2024 and sell it today you would lose (1.86) from holding Highlands REIT or give up 50.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Highlands REIT vs. Artis REIT
Performance |
| Timeline |
| Highlands REIT |
| Artis REIT |
Highlands REIT and Artis REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highlands REIT and Artis REIT
The main advantage of trading using opposite Highlands REIT and Artis REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highlands REIT position performs unexpectedly, Artis REIT 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 Artis REIT will offset losses from the drop in Artis REIT's long position.| Highlands REIT vs. British Land | ||
| Highlands REIT vs. Presidio Property Trust | ||
| Highlands REIT vs. VICI Properties | ||
| Highlands REIT vs. W P Carey |
| Artis REIT vs. Armada Hoffler Properties | ||
| Artis REIT vs. Ascott Residence Trust | ||
| Artis REIT vs. Armada Hflr Pr | ||
| Artis REIT vs. Modiv Inc |
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 Positions Ratings module to 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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |