Correlation Between Realty Income and Four Corners
Can any of the company-specific risk be diversified away by investing in both Realty Income and Four Corners 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 Realty Income and Four Corners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realty Income and Four Corners Property, you can compare the effects of market volatilities on Realty Income and Four Corners 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 Realty Income with a short position of Four Corners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realty Income and Four Corners.
Diversification Opportunities for Realty Income and Four Corners
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Realty and Four is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Realty Income and Four Corners Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Corners Property and Realty Income 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 Realty Income are associated (or correlated) with Four Corners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Corners Property has no effect on the direction of Realty Income i.e., Realty Income and Four Corners go up and down completely randomly.
Pair Corralation between Realty Income and Four Corners
Taking into account the 90-day investment horizon Realty Income is expected to under-perform the Four Corners. In addition to that, Realty Income is 1.37 times more volatile than Four Corners Property. It trades about -0.12 of its total potential returns per unit of risk. Four Corners Property is currently generating about 0.29 per unit of volatility. If you would invest 2,808 in Four Corners Property on August 30, 2024 and sell it today you would earn a total of 146.00 from holding Four Corners Property or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Realty Income vs. Four Corners Property
Performance |
| Timeline |
| Realty Income |
| Four Corners Property |
Realty Income and Four Corners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realty Income and Four Corners
The main advantage of trading using opposite Realty Income and Four Corners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realty Income position performs unexpectedly, Four Corners 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 Four Corners will offset losses from the drop in Four Corners' long position.| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
| Four Corners vs. CBL Associates Properties | Four Corners vs. Cedar Realty Trust | Four Corners vs. Simon Property Group | Four Corners vs. Realty Income |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |