Correlation Between Macerich and Pennsylvania Real
Can any of the company-specific risk be diversified away by investing in both Macerich and Pennsylvania Real 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 Pennsylvania Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macerich Company and Pennsylvania Real Estate, you can compare the effects of market volatilities on Macerich and Pennsylvania Real 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 Pennsylvania Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macerich and Pennsylvania Real.
Diversification Opportunities for Macerich and Pennsylvania Real
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Macerich and Pennsylvania is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Macerich Company and Pennsylvania Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pennsylvania Real Estate 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 Pennsylvania Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pennsylvania Real Estate has no effect on the direction of Macerich i.e., Macerich and Pennsylvania Real go up and down completely randomly.
Pair Corralation between Macerich and Pennsylvania Real
If you would invest 1,830 in Macerich Company on August 28, 2024 and sell it today you would earn a total of 202.00 from holding Macerich Company or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Macerich Company vs. Pennsylvania Real Estate
Performance |
| Timeline |
| Macerich |
| Pennsylvania Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Macerich and Pennsylvania Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macerich and Pennsylvania Real
The main advantage of trading using opposite Macerich and Pennsylvania Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macerich position performs unexpectedly, Pennsylvania Real 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 Pennsylvania Real will offset losses from the drop in Pennsylvania Real's long position.| Macerich vs. Kimco Realty | Macerich vs. Regency Centers | Macerich vs. Site Centers Corp | Macerich vs. Federal Realty Investment |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |