Correlation Between Regency Centers and Netstreit Corp
Can any of the company-specific risk be diversified away by investing in both Regency Centers and Netstreit Corp 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 Regency Centers and Netstreit Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and Netstreit Corp, you can compare the effects of market volatilities on Regency Centers and Netstreit Corp 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 Regency Centers with a short position of Netstreit Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Netstreit Corp.
Diversification Opportunities for Regency Centers and Netstreit Corp
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regency and Netstreit is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and Netstreit Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netstreit Corp and Regency Centers 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 Regency Centers are associated (or correlated) with Netstreit Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netstreit Corp has no effect on the direction of Regency Centers i.e., Regency Centers and Netstreit Corp go up and down completely randomly.
Pair Corralation between Regency Centers and Netstreit Corp
Considering the 90-day investment horizon Regency Centers is expected to generate 0.67 times more return on investment than Netstreit Corp. However, Regency Centers is 1.48 times less risky than Netstreit Corp. It trades about 0.03 of its potential returns per unit of risk. Netstreit Corp is currently generating about -0.02 per unit of risk. If you would invest 7,075 in Regency Centers on November 1, 2024 and sell it today you would earn a total of 121.00 from holding Regency Centers or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regency Centers vs. Netstreit Corp
Performance |
| Timeline |
| Regency Centers |
| Netstreit Corp |
Regency Centers and Netstreit Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regency Centers and Netstreit Corp
The main advantage of trading using opposite Regency Centers and Netstreit Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers position performs unexpectedly, Netstreit Corp 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 Netstreit Corp will offset losses from the drop in Netstreit Corp's long position.| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Rithm Property Trust | Regency Centers vs. Getty Realty |
| Netstreit Corp vs. Rithm Property Trust | Netstreit Corp vs. Four Corners Property | Netstreit Corp vs. Getty Realty | Netstreit Corp vs. Saul Centers |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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