Correlation Between Tanger Factory and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Tanger Factory and Acadia Realty 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 Tanger Factory and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tanger Factory Outlet and Acadia Realty Trust, you can compare the effects of market volatilities on Tanger Factory and Acadia Realty 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 Tanger Factory with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Acadia Realty.
Diversification Opportunities for Tanger Factory and Acadia Realty
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tanger and Acadia is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust and Tanger Factory 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 Tanger Factory Outlet are associated (or correlated) with Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Tanger Factory i.e., Tanger Factory and Acadia Realty go up and down completely randomly.
Pair Corralation between Tanger Factory and Acadia Realty
Considering the 90-day investment horizon Tanger Factory Outlet is expected to generate 0.95 times more return on investment than Acadia Realty. However, Tanger Factory Outlet is 1.06 times less risky than Acadia Realty. It trades about 0.1 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.08 per unit of risk. If you would invest 1,742 in Tanger Factory Outlet on November 19, 2024 and sell it today you would earn a total of 1,683 from holding Tanger Factory Outlet or generate 96.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Acadia Realty Trust
Performance |
| Timeline |
| Tanger Factory Outlet |
| Acadia Realty Trust |
Tanger Factory and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Acadia Realty
The main advantage of trading using opposite Tanger Factory and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
| Acadia Realty vs. Rithm Property Trust | Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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