Correlation Between STAG Industrial and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both STAG Industrial 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 STAG Industrial and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial and Acadia Realty Trust, you can compare the effects of market volatilities on STAG Industrial 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 STAG Industrial with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial and Acadia Realty.
Diversification Opportunities for STAG Industrial and Acadia Realty
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STAG and Acadia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial 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 STAG Industrial 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 STAG Industrial 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 STAG Industrial i.e., STAG Industrial and Acadia Realty go up and down completely randomly.
Pair Corralation between STAG Industrial and Acadia Realty
Given the investment horizon of 90 days STAG Industrial is expected to generate 3.2 times less return on investment than Acadia Realty. But when comparing it to its historical volatility, STAG Industrial is 1.21 times less risky than Acadia Realty. It trades about 0.03 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,345 in Acadia Realty Trust on September 2, 2024 and sell it today you would earn a total of 1,240 from holding Acadia Realty Trust or generate 92.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STAG Industrial vs. Acadia Realty Trust
Performance |
| Timeline |
| STAG Industrial |
| Acadia Realty Trust |
STAG Industrial and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAG Industrial and Acadia Realty
The main advantage of trading using opposite STAG Industrial and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial 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.| STAG Industrial vs. Douglas Emmett | STAG Industrial vs. Vornado Realty Trust | STAG Industrial vs. Highwoods Properties | STAG Industrial vs. Piedmont Office Realty |
| Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Retail Opportunity Investments |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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