Correlation Between Mapletree Commercial and Agree Realty
Can any of the company-specific risk be diversified away by investing in both Mapletree Commercial and Agree 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 Mapletree Commercial and Agree Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Commercial Trust and Agree Realty, you can compare the effects of market volatilities on Mapletree Commercial and Agree 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 Mapletree Commercial with a short position of Agree Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Commercial and Agree Realty.
Diversification Opportunities for Mapletree Commercial and Agree Realty
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mapletree and Agree is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Commercial Trust and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty and Mapletree Commercial 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 Mapletree Commercial Trust are associated (or correlated) with Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of Mapletree Commercial i.e., Mapletree Commercial and Agree Realty go up and down completely randomly.
Pair Corralation between Mapletree Commercial and Agree Realty
Assuming the 90 days horizon Mapletree Commercial Trust is expected to under-perform the Agree Realty. In addition to that, Mapletree Commercial is 2.25 times more volatile than Agree Realty. It trades about -0.22 of its total potential returns per unit of risk. Agree Realty is currently generating about -0.2 per unit of volatility. If you would invest 7,640 in Agree Realty on September 14, 2024 and sell it today you would lose (276.00) from holding Agree Realty or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapletree Commercial Trust vs. Agree Realty
Performance |
| Timeline |
| Mapletree Commercial |
| Agree Realty |
Mapletree Commercial and Agree Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Commercial and Agree Realty
The main advantage of trading using opposite Mapletree Commercial and Agree Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Commercial position performs unexpectedly, Agree 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 Agree Realty will offset losses from the drop in Agree Realty's long position.| Mapletree Commercial vs. Slate Grocery REIT | Mapletree Commercial vs. Seritage Growth Properties | Mapletree Commercial vs. Rithm Property Trust | Mapletree Commercial vs. Smart REIT |
| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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