Correlation Between RPT Realty and Regency Centers
Can any of the company-specific risk be diversified away by investing in both RPT Realty and Regency Centers 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 Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RPT Realty and Regency Centers, you can compare the effects of market volatilities on RPT Realty and Regency Centers 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 Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of RPT Realty and Regency Centers.
Diversification Opportunities for RPT Realty and Regency Centers
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RPT and Regency is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding RPT Realty and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of RPT Realty i.e., RPT Realty and Regency Centers go up and down completely randomly.
Pair Corralation between RPT Realty and Regency Centers
Considering the 90-day investment horizon RPT Realty is expected to generate 0.68 times more return on investment than Regency Centers. However, RPT Realty is 1.48 times less risky than Regency Centers. It trades about 0.54 of its potential returns per unit of risk. Regency Centers is currently generating about 0.06 per unit of risk. If you would invest 1,042 in RPT Realty on August 28, 2024 and sell it today you would earn a total of 69.00 from holding RPT Realty or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.24% |
| Values | Daily Returns |
RPT Realty vs. Regency Centers
Performance |
| Timeline |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Regency Centers |
RPT Realty and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RPT Realty and Regency Centers
The main advantage of trading using opposite RPT Realty and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RPT Realty position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' 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 |
| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Getty Realty | Regency Centers 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |