Correlation Between RPT Realty and Plaza Retail
Can any of the company-specific risk be diversified away by investing in both RPT Realty and Plaza Retail 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 RPT Realty and Plaza Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RPT Realty and Plaza Retail REIT, you can compare the effects of market volatilities on RPT Realty and Plaza Retail 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 RPT Realty with a short position of Plaza Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of RPT Realty and Plaza Retail.
Diversification Opportunities for RPT Realty and Plaza Retail
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RPT and Plaza is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding RPT Realty and Plaza Retail REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Retail REIT and RPT Realty 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 RPT Realty are associated (or correlated) with Plaza Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Retail REIT has no effect on the direction of RPT Realty i.e., RPT Realty and Plaza Retail go up and down completely randomly.
Pair Corralation between RPT Realty and Plaza Retail
If you would invest 1,111 in RPT Realty on August 31, 2024 and sell it today you would earn a total of 0.00 from holding RPT Realty or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
RPT Realty vs. Plaza Retail REIT
Performance |
| Timeline |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Plaza Retail REIT |
RPT Realty and Plaza Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RPT Realty and Plaza Retail
The main advantage of trading using opposite RPT Realty and Plaza Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RPT Realty position performs unexpectedly, Plaza Retail 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 Plaza Retail will offset losses from the drop in Plaza Retail's long position.| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties Corp |
| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery REIT |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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