Correlation Between Maui Land and Peakstone Realty
Can any of the company-specific risk be diversified away by investing in both Maui Land and Peakstone 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 Maui Land and Peakstone Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maui Land Pineapple and Peakstone Realty Trust, you can compare the effects of market volatilities on Maui Land and Peakstone 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 Maui Land with a short position of Peakstone Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and Peakstone Realty.
Diversification Opportunities for Maui Land and Peakstone Realty
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maui and Peakstone is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and Peakstone Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peakstone Realty Trust and Maui Land 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 Maui Land Pineapple are associated (or correlated) with Peakstone Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peakstone Realty Trust has no effect on the direction of Maui Land i.e., Maui Land and Peakstone Realty go up and down completely randomly.
Pair Corralation between Maui Land and Peakstone Realty
Considering the 90-day investment horizon Maui Land Pineapple is expected to generate 1.09 times more return on investment than Peakstone Realty. However, Maui Land is 1.09 times more volatile than Peakstone Realty Trust. It trades about 0.06 of its potential returns per unit of risk. Peakstone Realty Trust is currently generating about 0.04 per unit of risk. If you would invest 1,955 in Maui Land Pineapple on November 9, 2024 and sell it today you would earn a total of 42.00 from holding Maui Land Pineapple or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maui Land Pineapple vs. Peakstone Realty Trust
Performance |
| Timeline |
| Maui Land Pineapple |
| Peakstone Realty Trust |
Maui Land and Peakstone Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maui Land and Peakstone Realty
The main advantage of trading using opposite Maui Land and Peakstone Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, Peakstone 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 Peakstone Realty will offset losses from the drop in Peakstone Realty's long position.| Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord | Maui Land vs. Transcontinental Realty Investors |
| Peakstone Realty vs. Global Net Lease, | Peakstone Realty vs. Gladstone Commercial | Peakstone Realty vs. CTO Realty Growth | Peakstone Realty vs. W P Carey |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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