Correlation Between Tanger Factory and Terreno Realty
Can any of the company-specific risk be diversified away by investing in both Tanger Factory and Terreno 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 Terreno 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 Terreno Realty, you can compare the effects of market volatilities on Tanger Factory and Terreno 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 Terreno Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Terreno Realty.
Diversification Opportunities for Tanger Factory and Terreno Realty
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tanger and Terreno is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Terreno Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terreno Realty 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 Terreno Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terreno Realty has no effect on the direction of Tanger Factory i.e., Tanger Factory and Terreno Realty go up and down completely randomly.
Pair Corralation between Tanger Factory and Terreno Realty
Considering the 90-day investment horizon Tanger Factory Outlet is expected to generate 0.97 times more return on investment than Terreno Realty. However, Tanger Factory Outlet is 1.03 times less risky than Terreno Realty. It trades about 0.13 of its potential returns per unit of risk. Terreno Realty is currently generating about 0.03 per unit of risk. If you would invest 2,406 in Tanger Factory Outlet on August 24, 2024 and sell it today you would earn a total of 1,261 from holding Tanger Factory Outlet or generate 52.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Terreno Realty
Performance |
| Timeline |
| Tanger Factory Outlet |
| Terreno Realty |
Tanger Factory and Terreno Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Terreno Realty
The main advantage of trading using opposite Tanger Factory and Terreno Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory position performs unexpectedly, Terreno 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 Terreno Realty will offset losses from the drop in Terreno 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 |
| Terreno Realty vs. Plymouth Industrial REIT | Terreno Realty vs. EastGroup Properties | Terreno Realty vs. LXP Industrial Trust | Terreno Realty vs. First Industrial Realty |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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