Correlation Between Talanx AG and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Talanx AG 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 Talanx AG and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Acadia Realty Trust, you can compare the effects of market volatilities on Talanx AG 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 Talanx AG with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Acadia Realty.
Diversification Opportunities for Talanx AG and Acadia Realty
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Talanx and Acadia is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG 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 Talanx AG 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 Talanx AG 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 Talanx AG i.e., Talanx AG and Acadia Realty go up and down completely randomly.
Pair Corralation between Talanx AG and Acadia Realty
Assuming the 90 days horizon Talanx AG is expected to generate 0.77 times more return on investment than Acadia Realty. However, Talanx AG is 1.3 times less risky than Acadia Realty. It trades about 0.11 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.07 per unit of risk. If you would invest 4,266 in Talanx AG on October 14, 2024 and sell it today you would earn a total of 4,244 from holding Talanx AG or generate 99.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. Acadia Realty Trust
Performance |
| Timeline |
| Talanx AG |
| Acadia Realty Trust |
Talanx AG and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Acadia Realty
The main advantage of trading using opposite Talanx AG and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG 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.| Talanx AG vs. Mitsubishi Materials | Talanx AG vs. WIMFARM SA EO | Talanx AG vs. APPLIED MATERIALS | Talanx AG vs. Federal Agricultural Mortgage |
| Acadia Realty vs. Superior Plus Corp | Acadia Realty vs. NMI Holdings | Acadia Realty vs. SIVERS SEMICONDUCTORS AB | Acadia Realty vs. Talanx AG |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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