Correlation Between Indus Realty and Rexford Industrial
Can any of the company-specific risk be diversified away by investing in both Indus Realty and Rexford Industrial 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 Indus Realty and Rexford Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indus Realty Trust and Rexford Industrial Realty, you can compare the effects of market volatilities on Indus Realty and Rexford Industrial 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 Indus Realty with a short position of Rexford Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indus Realty and Rexford Industrial.
Diversification Opportunities for Indus Realty and Rexford Industrial
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indus and Rexford is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Indus Realty Trust and Rexford Industrial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rexford Industrial Realty and Indus 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 Indus Realty Trust are associated (or correlated) with Rexford Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rexford Industrial Realty has no effect on the direction of Indus Realty i.e., Indus Realty and Rexford Industrial go up and down completely randomly.
Pair Corralation between Indus Realty and Rexford Industrial
If you would invest 6,699 in Indus Realty Trust on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Indus Realty Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Indus Realty Trust vs. Rexford Industrial Realty
Performance |
| Timeline |
| Indus Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Rexford Industrial Realty |
Indus Realty and Rexford Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indus Realty and Rexford Industrial
The main advantage of trading using opposite Indus Realty and Rexford Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indus Realty position performs unexpectedly, Rexford Industrial 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 Rexford Industrial will offset losses from the drop in Rexford Industrial's long position.| Indus Realty vs. Plymouth Industrial REIT | Indus Realty vs. First Industrial Realty | Indus Realty vs. Terreno Realty | Indus Realty vs. Rexford Industrial Realty |
| Rexford Industrial vs. Plymouth Industrial REIT | Rexford Industrial vs. EastGroup Properties | Rexford Industrial vs. LXP Industrial Trust | Rexford Industrial vs. Terreno Realty |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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