Correlation Between Highwoods Properties and Alexandria Real
Can any of the company-specific risk be diversified away by investing in both Highwoods Properties and Alexandria 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 Highwoods Properties and Alexandria Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highwoods Properties and Alexandria Real Estate, you can compare the effects of market volatilities on Highwoods Properties and Alexandria 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 Highwoods Properties with a short position of Alexandria Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highwoods Properties and Alexandria Real.
Diversification Opportunities for Highwoods Properties and Alexandria Real
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Highwoods and Alexandria is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Highwoods Properties and Alexandria Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria Real Estate and Highwoods Properties 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 Highwoods Properties are associated (or correlated) with Alexandria Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria Real Estate has no effect on the direction of Highwoods Properties i.e., Highwoods Properties and Alexandria Real go up and down completely randomly.
Pair Corralation between Highwoods Properties and Alexandria Real
Considering the 90-day investment horizon Highwoods Properties is expected to generate 0.84 times more return on investment than Alexandria Real. However, Highwoods Properties is 1.2 times less risky than Alexandria Real. It trades about -0.36 of its potential returns per unit of risk. Alexandria Real Estate is currently generating about -0.38 per unit of risk. If you would invest 3,519 in Highwoods Properties on August 24, 2024 and sell it today you would lose (330.00) from holding Highwoods Properties or give up 9.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highwoods Properties vs. Alexandria Real Estate
Performance |
| Timeline |
| Highwoods Properties |
| Alexandria Real Estate |
Highwoods Properties and Alexandria Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highwoods Properties and Alexandria Real
The main advantage of trading using opposite Highwoods Properties and Alexandria Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highwoods Properties position performs unexpectedly, Alexandria 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 Alexandria Real will offset losses from the drop in Alexandria Real's long position.| Highwoods Properties vs. Piedmont Office Realty | Highwoods Properties vs. Douglas Emmett | Highwoods Properties vs. Kilroy Realty Corp | Highwoods Properties vs. Hudson Pacific Properties |
| Alexandria Real vs. Vornado Realty Trust | Alexandria Real vs. SL Green Realty | Alexandria Real vs. Kilroy Realty Corp | Alexandria Real vs. Highwoods Properties |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |