Correlation Between Inventrust Properties and Rexford Industrial
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties 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 Inventrust Properties and Rexford Industrial 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 Rexford Industrial Realty, you can compare the effects of market volatilities on Inventrust Properties 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 Inventrust Properties with a short position of Rexford Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Rexford Industrial.
Diversification Opportunities for Inventrust Properties and Rexford Industrial
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inventrust and Rexford is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp 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 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 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 Inventrust Properties i.e., Inventrust Properties and Rexford Industrial go up and down completely randomly.
Pair Corralation between Inventrust Properties and Rexford Industrial
Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 0.78 times more return on investment than Rexford Industrial. However, Inventrust Properties Corp is 1.29 times less risky than Rexford Industrial. It trades about 0.2 of its potential returns per unit of risk. Rexford Industrial Realty is currently generating about -0.17 per unit of risk. If you would invest 2,946 in Inventrust Properties Corp on August 27, 2024 and sell it today you would earn a total of 129.00 from holding Inventrust Properties Corp or generate 4.38% 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. Rexford Industrial Realty
Performance |
| Timeline |
| Inventrust Properties |
| Rexford Industrial Realty |
Inventrust Properties and Rexford Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventrust Properties and Rexford Industrial
The main advantage of trading using opposite Inventrust Properties and Rexford Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties 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.| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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