Correlation Between Rithm Property and Alexanders
Can any of the company-specific risk be diversified away by investing in both Rithm Property and Alexanders 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 Rithm Property and Alexanders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Property Trust and Alexanders, you can compare the effects of market volatilities on Rithm Property and Alexanders 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 Rithm Property with a short position of Alexanders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Alexanders.
Diversification Opportunities for Rithm Property and Alexanders
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rithm and Alexanders is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders and Rithm Property 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 Rithm Property Trust are associated (or correlated) with Alexanders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexanders has no effect on the direction of Rithm Property i.e., Rithm Property and Alexanders go up and down completely randomly.
Pair Corralation between Rithm Property and Alexanders
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Alexanders. In addition to that, Rithm Property is 1.63 times more volatile than Alexanders. It trades about -0.03 of its total potential returns per unit of risk. Alexanders is currently generating about 0.05 per unit of volatility. If you would invest 17,574 in Alexanders on September 14, 2024 and sell it today you would earn a total of 3,693 from holding Alexanders or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Property Trust vs. Alexanders
Performance |
| Timeline |
| Rithm Property Trust |
| Alexanders |
Rithm Property and Alexanders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Property and Alexanders
The main advantage of trading using opposite Rithm Property and Alexanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property position performs unexpectedly, Alexanders 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 Alexanders will offset losses from the drop in Alexanders' long position.| Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties Corp |
| Alexanders vs. Saul Centers | Alexanders vs. Urban Edge Properties | Alexanders vs. Rithm Property Trust | Alexanders vs. Site Centers Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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