Correlation Between Regency Centers and Welltower
Can any of the company-specific risk be diversified away by investing in both Regency Centers and Welltower 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 Welltower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and Welltower, you can compare the effects of market volatilities on Regency Centers and Welltower 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 Welltower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Welltower.
Diversification Opportunities for Regency Centers and Welltower
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regency and Welltower is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and Welltower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welltower 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 Welltower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welltower has no effect on the direction of Regency Centers i.e., Regency Centers and Welltower go up and down completely randomly.
Pair Corralation between Regency Centers and Welltower
Considering the 90-day investment horizon Regency Centers is expected to generate 0.64 times more return on investment than Welltower. However, Regency Centers is 1.56 times less risky than Welltower. It trades about 0.27 of its potential returns per unit of risk. Welltower is currently generating about 0.08 per unit of risk. If you would invest 7,243 in Regency Centers on August 30, 2024 and sell it today you would earn a total of 348.00 from holding Regency Centers or generate 4.8% 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. Welltower
Performance |
| Timeline |
| Regency Centers |
| Welltower |
Regency Centers and Welltower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regency Centers and Welltower
The main advantage of trading using opposite Regency Centers and Welltower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers position performs unexpectedly, Welltower 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 Welltower will offset losses from the drop in Welltower's long position.| Regency Centers vs. Saul Centers | Regency Centers vs. Site Centers Corp | Regency Centers vs. Acadia Realty Trust | Regency Centers vs. Retail Opportunity Investments |
| Welltower vs. Boston Properties | Welltower vs. Douglas Emmett | Welltower vs. Kilroy Realty Corp | Welltower vs. Highwoods Properties |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |