Correlation Between Netstreit Corp and Macerich
Can any of the company-specific risk be diversified away by investing in both Netstreit Corp and Macerich 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 Netstreit Corp and Macerich into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netstreit Corp and Macerich Company, you can compare the effects of market volatilities on Netstreit Corp and Macerich 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 Netstreit Corp with a short position of Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netstreit Corp and Macerich.
Diversification Opportunities for Netstreit Corp and Macerich
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netstreit and Macerich is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Netstreit Corp and Macerich Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich and Netstreit Corp 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 Netstreit Corp are associated (or correlated) with Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of Netstreit Corp i.e., Netstreit Corp and Macerich go up and down completely randomly.
Pair Corralation between Netstreit Corp and Macerich
Given the investment horizon of 90 days Netstreit Corp is expected to generate 4.2 times less return on investment than Macerich. But when comparing it to its historical volatility, Netstreit Corp is 1.72 times less risky than Macerich. It trades about 0.05 of its potential returns per unit of risk. Macerich Company is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 918.00 in Macerich Company on August 26, 2024 and sell it today you would earn a total of 1,054 from holding Macerich Company or generate 114.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netstreit Corp vs. Macerich Company
Performance |
| Timeline |
| Netstreit Corp |
| Macerich |
Netstreit Corp and Macerich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netstreit Corp and Macerich
The main advantage of trading using opposite Netstreit Corp and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netstreit Corp position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich's long position.| Netstreit Corp vs. Four Corners Property | Netstreit Corp vs. Getty Realty | Netstreit Corp vs. Saul Centers | Netstreit Corp vs. Site Centers Corp |
| Macerich vs. Site Centers Corp | Macerich vs. Inventrust Properties Corp | Macerich vs. Retail Opportunity Investments | Macerich vs. Netstreit Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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