Correlation Between LXP Industrial and Indus Realty
Can any of the company-specific risk be diversified away by investing in both LXP Industrial and Indus Realty 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 LXP Industrial and Indus Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LXP Industrial Trust and Indus Realty Trust, you can compare the effects of market volatilities on LXP Industrial and Indus Realty 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 LXP Industrial with a short position of Indus Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of LXP Industrial and Indus Realty.
Diversification Opportunities for LXP Industrial and Indus Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LXP and Indus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LXP Industrial Trust and Indus Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indus Realty Trust and LXP Industrial 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 LXP Industrial Trust are associated (or correlated) with Indus Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indus Realty Trust has no effect on the direction of LXP Industrial i.e., LXP Industrial and Indus Realty go up and down completely randomly.
Pair Corralation between LXP Industrial and Indus Realty
If you would invest 815.00 in LXP Industrial Trust on November 18, 2024 and sell it today you would earn a total of 34.00 from holding LXP Industrial Trust or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LXP Industrial Trust vs. Indus Realty Trust
Performance |
| Timeline |
| LXP Industrial Trust |
| Indus Realty Trust |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
LXP Industrial and Indus Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LXP Industrial and Indus Realty
The main advantage of trading using opposite LXP Industrial and Indus Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LXP Industrial position performs unexpectedly, Indus Realty 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 Indus Realty will offset losses from the drop in Indus Realty's long position.| LXP Industrial vs. First Industrial Realty | LXP Industrial vs. Plymouth Industrial REIT | LXP Industrial vs. Global Self Storage | LXP Industrial vs. Terreno Realty |
| Indus Realty vs. Plymouth Industrial REIT | Indus Realty vs. First Industrial Realty | Indus Realty vs. Terreno Realty | Indus Realty vs. Rexford Industrial 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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