Correlation Between Tanger Factory and Vornado Realty
Can any of the company-specific risk be diversified away by investing in both Tanger Factory and Vornado 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 Vornado 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 Vornado Realty Trust, you can compare the effects of market volatilities on Tanger Factory and Vornado 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 Vornado Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Vornado Realty.
Diversification Opportunities for Tanger Factory and Vornado Realty
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tanger and Vornado is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Vornado Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vornado 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 Vornado Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vornado Realty Trust has no effect on the direction of Tanger Factory i.e., Tanger Factory and Vornado Realty go up and down completely randomly.
Pair Corralation between Tanger Factory and Vornado Realty
Considering the 90-day investment horizon Tanger Factory Outlet is expected to generate 0.64 times more return on investment than Vornado Realty. However, Tanger Factory Outlet is 1.56 times less risky than Vornado Realty. It trades about 0.25 of its potential returns per unit of risk. Vornado Realty Trust is currently generating about 0.14 per unit of risk. If you would invest 3,291 in Tanger Factory Outlet on August 30, 2024 and sell it today you would earn a total of 419.00 from holding Tanger Factory Outlet or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Vornado Realty Trust
Performance |
| Timeline |
| Tanger Factory Outlet |
| Vornado Realty Trust |
Tanger Factory and Vornado Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Vornado Realty
The main advantage of trading using opposite Tanger Factory and Vornado Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory position performs unexpectedly, Vornado 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 Vornado Realty will offset losses from the drop in Vornado Realty's long position.| Tanger Factory vs. Saul Centers | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Acadia Realty Trust | Tanger Factory vs. Retail Opportunity Investments |
| Vornado Realty vs. Boston Properties | Vornado Realty vs. Douglas Emmett | Vornado Realty vs. Kilroy Realty Corp | Vornado Realty vs. Highwoods Properties |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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