Correlation Between Primaris Real and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Primaris Real and Regency Centers 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 Primaris Real and Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primaris Real Estate and Regency Centers, you can compare the effects of market volatilities on Primaris Real and Regency Centers 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 Primaris Real with a short position of Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primaris Real and Regency Centers.
Diversification Opportunities for Primaris Real and Regency Centers
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Primaris and Regency is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Primaris Real Estate and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers and Primaris Real 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 Primaris Real Estate are associated (or correlated) with Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Primaris Real i.e., Primaris Real and Regency Centers go up and down completely randomly.
Pair Corralation between Primaris Real and Regency Centers
Assuming the 90 days horizon Primaris Real is expected to generate 2.03 times less return on investment than Regency Centers. In addition to that, Primaris Real is 1.1 times more volatile than Regency Centers. It trades about 0.02 of its total potential returns per unit of risk. Regency Centers is currently generating about 0.05 per unit of volatility. If you would invest 5,786 in Regency Centers on September 12, 2024 and sell it today you would earn a total of 1,671 from holding Regency Centers or generate 28.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Primaris Real Estate vs. Regency Centers
Performance |
| Timeline |
| Primaris Real Estate |
| Regency Centers |
Primaris Real and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primaris Real and Regency Centers
The main advantage of trading using opposite Primaris Real and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primaris Real position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| Primaris Real vs. Slate Grocery REIT | Primaris Real vs. Seritage Growth Properties | Primaris Real vs. Rithm Property Trust | Primaris Real vs. Smart REIT |
| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Rithm Property Trust | Regency Centers vs. Getty 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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