Correlation Between Ready Capital and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Ready Capital 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 Ready Capital and Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ready Capital Corp and Regency Centers, you can compare the effects of market volatilities on Ready Capital 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 Ready Capital with a short position of Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ready Capital and Regency Centers.
Diversification Opportunities for Ready Capital and Regency Centers
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ready and Regency is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ready Capital Corp and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers and Ready Capital 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 Ready Capital Corp 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 Ready Capital i.e., Ready Capital and Regency Centers go up and down completely randomly.
Pair Corralation between Ready Capital and Regency Centers
Allowing for the 90-day total investment horizon Ready Capital Corp is expected to under-perform the Regency Centers. In addition to that, Ready Capital is 2.11 times more volatile than Regency Centers. It trades about -0.03 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 2,209 in Regency Centers on August 26, 2024 and sell it today you would earn a total of 226.00 from holding Regency Centers or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ready Capital Corp vs. Regency Centers
Performance |
| Timeline |
| Ready Capital Corp |
| Regency Centers |
Ready Capital and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ready Capital and Regency Centers
The main advantage of trading using opposite Ready Capital and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ready Capital 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.| Ready Capital vs. Blackstone Mortgage Trust | Ready Capital vs. Omega Healthcare Investors | Ready Capital vs. Medical Properties Trust |
| Regency Centers vs. Avient Corp | Regency Centers vs. Cedar Realty Trust | Regency Centers vs. The Mosaic | Regency Centers vs. Axalta Coating Systems |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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