Correlation Between One Liberty and Rexford Industrial
Can any of the company-specific risk be diversified away by investing in both One Liberty and Rexford Industrial 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 One Liberty and Rexford Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Liberty Properties and Rexford Industrial Realty, you can compare the effects of market volatilities on One Liberty and Rexford Industrial 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 One Liberty with a short position of Rexford Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Liberty and Rexford Industrial.
Diversification Opportunities for One Liberty and Rexford Industrial
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and Rexford is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties and Rexford Industrial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rexford Industrial Realty and One Liberty 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 One Liberty Properties are associated (or correlated) with Rexford Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rexford Industrial Realty has no effect on the direction of One Liberty i.e., One Liberty and Rexford Industrial go up and down completely randomly.
Pair Corralation between One Liberty and Rexford Industrial
Considering the 90-day investment horizon One Liberty is expected to generate 3.4 times less return on investment than Rexford Industrial. But when comparing it to its historical volatility, One Liberty Properties is 1.63 times less risky than Rexford Industrial. It trades about 0.05 of its potential returns per unit of risk. Rexford Industrial Realty is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,900 in Rexford Industrial Realty on November 18, 2024 and sell it today you would earn a total of 134.00 from holding Rexford Industrial Realty or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Liberty Properties vs. Rexford Industrial Realty
Performance |
| Timeline |
| One Liberty Properties |
| Rexford Industrial Realty |
One Liberty and Rexford Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Liberty and Rexford Industrial
The main advantage of trading using opposite One Liberty and Rexford Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Liberty position performs unexpectedly, Rexford Industrial 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 Rexford Industrial will offset losses from the drop in Rexford Industrial's long position.| One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty vs. NexPoint Diversified Real |
| Rexford Industrial vs. Plymouth Industrial REIT | Rexford Industrial vs. EastGroup Properties | Rexford Industrial vs. LXP Industrial Trust | Rexford Industrial vs. Terreno Realty |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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