Correlation Between Realty Income and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both Realty Income and Mapletree Commercial 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 Mapletree Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realty Income and Mapletree Commercial Trust, you can compare the effects of market volatilities on Realty Income and Mapletree Commercial 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 Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realty Income and Mapletree Commercial.
Diversification Opportunities for Realty Income and Mapletree Commercial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Realty and Mapletree is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Realty Income and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial 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 Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of Realty Income i.e., Realty Income and Mapletree Commercial go up and down completely randomly.
Pair Corralation between Realty Income and Mapletree Commercial
If you would invest 5,150 in Realty Income on October 20, 2024 and sell it today you would earn a total of 312.00 from holding Realty Income or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Realty Income vs. Mapletree Commercial Trust
Performance |
| Timeline |
| Realty Income |
| Mapletree Commercial |
Realty Income and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realty Income and Mapletree Commercial
The main advantage of trading using opposite Realty Income and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realty Income position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial's long position.| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
| Mapletree Commercial vs. Cedar Realty Trust | Mapletree Commercial vs. Wheeler Real Estate | Mapletree Commercial vs. Macerich Company | Mapletree Commercial vs. Simon Property Group |
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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