Correlation Between Tanger Factory and Capital Counties
Can any of the company-specific risk be diversified away by investing in both Tanger Factory and Capital Counties 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 Capital Counties 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 Capital Counties Properties, you can compare the effects of market volatilities on Tanger Factory and Capital Counties 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 Capital Counties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Capital Counties.
Diversification Opportunities for Tanger Factory and Capital Counties
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tanger and Capital is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Capital Counties Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Counties Pro 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 Capital Counties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Counties Pro has no effect on the direction of Tanger Factory i.e., Tanger Factory and Capital Counties go up and down completely randomly.
Pair Corralation between Tanger Factory and Capital Counties
Assuming the 90 days horizon Tanger Factory Outlet is expected to generate 1.03 times more return on investment than Capital Counties. However, Tanger Factory is 1.03 times more volatile than Capital Counties Properties. It trades about 0.28 of its potential returns per unit of risk. Capital Counties Properties is currently generating about -0.2 per unit of risk. If you would invest 3,102 in Tanger Factory Outlet on August 26, 2024 and sell it today you would earn a total of 355.00 from holding Tanger Factory Outlet or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Capital Counties Properties
Performance |
| Timeline |
| Tanger Factory Outlet |
| Capital Counties Pro |
Tanger Factory and Capital Counties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Capital Counties
The main advantage of trading using opposite Tanger Factory and Capital Counties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory position performs unexpectedly, Capital Counties 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 Capital Counties will offset losses from the drop in Capital Counties' long position.| Tanger Factory vs. Seven West Media | Tanger Factory vs. LION ONE METALS | Tanger Factory vs. ATRESMEDIA | Tanger Factory vs. CNVISION MEDIA |
| Capital Counties vs. CarsalesCom | Capital Counties vs. MINCO SILVER | Capital Counties vs. CeoTronics AG | Capital Counties vs. Jupiter Fund Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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