Correlation Between Macerich and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both Macerich and Mapletree Commercial 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 Macerich and Mapletree Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macerich Company and Mapletree Commercial Trust, you can compare the effects of market volatilities on Macerich and Mapletree Commercial 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 Macerich with a short position of Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macerich and Mapletree Commercial.
Diversification Opportunities for Macerich and Mapletree Commercial
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macerich and Mapletree is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Macerich Company and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial and Macerich 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 Macerich Company are associated (or correlated) with Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of Macerich i.e., Macerich and Mapletree Commercial go up and down completely randomly.
Pair Corralation between Macerich and Mapletree Commercial
Considering the 90-day investment horizon Macerich Company is expected to generate 0.63 times more return on investment than Mapletree Commercial. However, Macerich Company is 1.58 times less risky than Mapletree Commercial. It trades about 0.18 of its potential returns per unit of risk. Mapletree Commercial Trust is currently generating about 0.02 per unit of risk. If you would invest 1,504 in Macerich Company on November 2, 2024 and sell it today you would earn a total of 537.00 from holding Macerich Company or generate 35.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macerich Company vs. Mapletree Commercial Trust
Performance |
| Timeline |
| Macerich |
| Mapletree Commercial |
Macerich and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macerich and Mapletree Commercial
The main advantage of trading using opposite Macerich and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macerich position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial's long position.| Macerich vs. Kimco Realty | Macerich vs. Regency Centers | Macerich vs. Site Centers Corp | Macerich vs. Federal Realty Investment |
| Mapletree Commercial vs. Cedar Realty Trust | Mapletree Commercial vs. Wheeler Real Estate | Mapletree Commercial vs. Macerich Company | Mapletree Commercial vs. Simon Property Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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