Correlation Between Plaza Retail and Highlands REIT
Can any of the company-specific risk be diversified away by investing in both Plaza Retail and Highlands REIT 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 Plaza Retail and Highlands REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Retail REIT and Highlands REIT, you can compare the effects of market volatilities on Plaza Retail and Highlands REIT 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 Plaza Retail with a short position of Highlands REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Highlands REIT.
Diversification Opportunities for Plaza Retail and Highlands REIT
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plaza and Highlands is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Highlands REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highlands REIT and Plaza Retail 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 Plaza Retail REIT are associated (or correlated) with Highlands REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highlands REIT has no effect on the direction of Plaza Retail i.e., Plaza Retail and Highlands REIT go up and down completely randomly.
Pair Corralation between Plaza Retail and Highlands REIT
Assuming the 90 days horizon Plaza Retail is expected to generate 2218.5 times less return on investment than Highlands REIT. But when comparing it to its historical volatility, Plaza Retail REIT is 789.62 times less risky than Highlands REIT. It trades about 0.09 of its potential returns per unit of risk. Highlands REIT is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 5.62 in Highlands REIT on August 25, 2024 and sell it today you would earn a total of 5.38 from holding Highlands REIT or generate 95.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plaza Retail REIT vs. Highlands REIT
Performance |
| Timeline |
| Plaza Retail REIT |
| Highlands REIT |
Plaza Retail and Highlands REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Highlands REIT
The main advantage of trading using opposite Plaza Retail and Highlands REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail position performs unexpectedly, Highlands REIT 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 Highlands REIT will offset losses from the drop in Highlands REIT's long position.| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery REIT |
| Highlands REIT vs. British Land | Highlands REIT vs. Presidio Property Trust | Highlands REIT vs. VICI Properties | Highlands REIT vs. W P Carey |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |