Correlation Between Regency Centers and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Regency Centers and Tanger Factory 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 Tanger Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and Tanger Factory Outlet, you can compare the effects of market volatilities on Regency Centers and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Tanger Factory.
Diversification Opportunities for Regency Centers and Tanger Factory
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regency and Tanger is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Regency Centers i.e., Regency Centers and Tanger Factory go up and down completely randomly.
Pair Corralation between Regency Centers and Tanger Factory
Considering the 90-day investment horizon Regency Centers is expected to generate 0.97 times more return on investment than Tanger Factory. However, Regency Centers is 1.03 times less risky than Tanger Factory. It trades about 0.03 of its potential returns per unit of risk. Tanger Factory Outlet is currently generating about 0.01 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regency Centers vs. Tanger Factory Outlet
Performance |
| Timeline |
| Regency Centers |
| Tanger Factory Outlet |
Regency Centers and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regency Centers and Tanger Factory
The main advantage of trading using opposite Regency Centers and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory'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 |
| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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