Correlation Between Tanger Factory and Alexanders
Can any of the company-specific risk be diversified away by investing in both Tanger Factory 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 Tanger Factory and Alexanders 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 Alexanders, you can compare the effects of market volatilities on Tanger Factory 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 Tanger Factory with a short position of Alexanders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Alexanders.
Diversification Opportunities for Tanger Factory and Alexanders
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tanger and Alexanders is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders 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 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 Tanger Factory i.e., Tanger Factory and Alexanders go up and down completely randomly.
Pair Corralation between Tanger Factory and Alexanders
Considering the 90-day investment horizon Tanger Factory Outlet is expected to generate 0.76 times more return on investment than Alexanders. However, Tanger Factory Outlet is 1.31 times less risky than Alexanders. It trades about 0.37 of its potential returns per unit of risk. Alexanders is currently generating about 0.0 per unit of risk. If you would invest 3,370 in Tanger Factory Outlet on August 31, 2024 and sell it today you would earn a total of 340.00 from holding Tanger Factory Outlet or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Alexanders
Performance |
| Timeline |
| Tanger Factory Outlet |
| Alexanders |
Tanger Factory and Alexanders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Alexanders
The main advantage of trading using opposite Tanger Factory and Alexanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory 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.| Tanger Factory vs. Federal Realty Investment | Tanger Factory vs. Macerich Company | Tanger Factory vs. National Retail Properties | Tanger Factory vs. Kimco Realty |
| Alexanders vs. Saul Centers | Alexanders vs. Urban Edge Properties | Alexanders vs. Site Centers Corp | Alexanders vs. Kite Realty Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |