Correlation Between Inventrust Properties and Broadstone Net
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties and Broadstone Net 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 Inventrust Properties and Broadstone Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventrust Properties Corp and Broadstone Net Lease, you can compare the effects of market volatilities on Inventrust Properties and Broadstone Net 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 Inventrust Properties with a short position of Broadstone Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Broadstone Net.
Diversification Opportunities for Inventrust Properties and Broadstone Net
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inventrust and Broadstone is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp and Broadstone Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadstone Net Lease and Inventrust 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 Inventrust Properties Corp are associated (or correlated) with Broadstone Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadstone Net Lease has no effect on the direction of Inventrust Properties i.e., Inventrust Properties and Broadstone Net go up and down completely randomly.
Pair Corralation between Inventrust Properties and Broadstone Net
Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 1.1 times more return on investment than Broadstone Net. However, Inventrust Properties is 1.1 times more volatile than Broadstone Net Lease. It trades about 0.11 of its potential returns per unit of risk. Broadstone Net Lease is currently generating about -0.09 per unit of risk. If you would invest 2,856 in Inventrust Properties Corp on August 25, 2024 and sell it today you would earn a total of 219.00 from holding Inventrust Properties Corp or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventrust Properties Corp vs. Broadstone Net Lease
Performance |
| Timeline |
| Inventrust Properties |
| Broadstone Net Lease |
Inventrust Properties and Broadstone Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventrust Properties and Broadstone Net
The main advantage of trading using opposite Inventrust Properties and Broadstone Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties position performs unexpectedly, Broadstone Net 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 Broadstone Net will offset losses from the drop in Broadstone Net's long position.| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
| Broadstone Net vs. Boston Properties | Broadstone Net vs. Alexandria Real Estate | Broadstone Net vs. Highwoods Properties | Broadstone Net vs. Hudson Pacific 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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