Correlation Between Phillips Edison and Artis REIT
Can any of the company-specific risk be diversified away by investing in both Phillips Edison and Artis 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 Phillips Edison and Artis REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phillips Edison Co and Artis REIT, you can compare the effects of market volatilities on Phillips Edison and Artis 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 Phillips Edison with a short position of Artis REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phillips Edison and Artis REIT.
Diversification Opportunities for Phillips Edison and Artis REIT
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phillips and Artis is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Phillips Edison Co and Artis REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis REIT and Phillips Edison 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 Phillips Edison Co are associated (or correlated) with Artis REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis REIT has no effect on the direction of Phillips Edison i.e., Phillips Edison and Artis REIT go up and down completely randomly.
Pair Corralation between Phillips Edison and Artis REIT
Given the investment horizon of 90 days Phillips Edison Co is expected to generate 0.79 times more return on investment than Artis REIT. However, Phillips Edison Co is 1.27 times less risky than Artis REIT. It trades about 0.42 of its potential returns per unit of risk. Artis REIT is currently generating about -0.19 per unit of risk. If you would invest 3,705 in Phillips Edison Co on August 30, 2024 and sell it today you would earn a total of 275.00 from holding Phillips Edison Co or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phillips Edison Co vs. Artis REIT
Performance |
| Timeline |
| Phillips Edison |
| Artis REIT |
Phillips Edison and Artis REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phillips Edison and Artis REIT
The main advantage of trading using opposite Phillips Edison and Artis REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phillips Edison position performs unexpectedly, Artis 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 Artis REIT will offset losses from the drop in Artis REIT's long position.| Phillips Edison vs. Site Centers Corp | Phillips Edison vs. Retail Opportunity Investments | Phillips Edison vs. Urban Edge Properties | Phillips Edison vs. Netstreit Corp |
| Artis REIT vs. Boston Properties | Artis REIT vs. Kilroy Realty Corp | Artis REIT vs. SL Green Realty | Artis REIT vs. Vornado Realty Trust |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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