Correlation Between Netstreit Corp and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Netstreit Corp and Regency Centers 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 Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netstreit Corp and Regency Centers, you can compare the effects of market volatilities on Netstreit Corp and Regency Centers 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 Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netstreit Corp and Regency Centers.
Diversification Opportunities for Netstreit Corp and Regency Centers
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Netstreit and Regency is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Netstreit Corp and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Netstreit Corp i.e., Netstreit Corp and Regency Centers go up and down completely randomly.
Pair Corralation between Netstreit Corp and Regency Centers
Given the investment horizon of 90 days Netstreit Corp is expected to under-perform the Regency Centers. In addition to that, Netstreit Corp is 1.44 times more volatile than Regency Centers. It trades about -0.02 of its total potential returns per unit of risk. Regency Centers is currently generating about 0.08 per unit of volatility. If you would invest 7,101 in Regency Centers on August 28, 2024 and sell it today you would earn a total of 301.00 from holding Regency Centers or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netstreit Corp vs. Regency Centers
Performance |
| Timeline |
| Netstreit Corp |
| Regency Centers |
Netstreit Corp and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netstreit Corp and Regency Centers
The main advantage of trading using opposite Netstreit Corp and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netstreit Corp position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| Netstreit Corp vs. Four Corners Property | Netstreit Corp vs. Getty Realty | Netstreit Corp vs. Saul Centers | Netstreit Corp vs. Site Centers Corp |
| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Getty Realty | Regency Centers vs. Site Centers 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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