Correlation Between Choice Properties and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Choice Properties and Acadia 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 Choice Properties and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choice Properties Real and Acadia Realty Trust, you can compare the effects of market volatilities on Choice Properties and Acadia 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 Choice Properties with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choice Properties and Acadia Realty.
Diversification Opportunities for Choice Properties and Acadia Realty
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Choice and Acadia is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Choice Properties Real and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust and Choice Properties 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 Choice Properties Real are associated (or correlated) with Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Choice Properties i.e., Choice Properties and Acadia Realty go up and down completely randomly.
Pair Corralation between Choice Properties and Acadia Realty
Assuming the 90 days horizon Choice Properties Real is expected to under-perform the Acadia Realty. But the pink sheet apears to be less risky and, when comparing its historical volatility, Choice Properties Real is 1.01 times less risky than Acadia Realty. The pink sheet trades about -0.25 of its potential returns per unit of risk. The Acadia Realty Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,460 in Acadia Realty Trust on August 27, 2024 and sell it today you would earn a total of 62.00 from holding Acadia Realty Trust or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Choice Properties Real vs. Acadia Realty Trust
Performance |
| Timeline |
| Choice Properties Real |
| Acadia Realty Trust |
Choice Properties and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choice Properties and Acadia Realty
The main advantage of trading using opposite Choice Properties and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choice Properties position performs unexpectedly, Acadia 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| Choice Properties vs. Smart REIT | Choice Properties vs. Phillips Edison Co | Choice Properties vs. Simon Property Group | Choice Properties vs. Inventrust Properties Corp |
| Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Retail Opportunity Investments |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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