Correlation Between Realty Income and RPT Realty
Can any of the company-specific risk be diversified away by investing in both Realty Income and RPT 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 Realty Income and RPT Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realty Income and RPT Realty, you can compare the effects of market volatilities on Realty Income and RPT 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 Realty Income with a short position of RPT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realty Income and RPT Realty.
Diversification Opportunities for Realty Income and RPT Realty
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Realty and RPT is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Realty Income and RPT Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPT Realty 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 RPT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPT Realty has no effect on the direction of Realty Income i.e., Realty Income and RPT Realty go up and down completely randomly.
Pair Corralation between Realty Income and RPT Realty
If you would invest 1,111 in RPT Realty on August 24, 2024 and sell it today you would earn a total of 0.00 from holding RPT Realty or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Realty Income vs. RPT Realty
Performance |
| Timeline |
| Realty Income |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Realty Income and RPT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realty Income and RPT Realty
The main advantage of trading using opposite Realty Income and RPT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realty Income position performs unexpectedly, RPT 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 RPT Realty will offset losses from the drop in RPT Realty's long position.| Realty Income vs. Federal Realty Investment | Realty Income vs. Agree Realty | Realty Income vs. Tanger Factory Outlet | Realty Income vs. Netstreit Corp |
| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties 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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