Correlation Between UMH Properties and Apartment Income
Can any of the company-specific risk be diversified away by investing in both UMH Properties and Apartment Income 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 UMH Properties and Apartment Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UMH Properties and Apartment Income REIT, you can compare the effects of market volatilities on UMH Properties and Apartment Income 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 UMH Properties with a short position of Apartment Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of UMH Properties and Apartment Income.
Diversification Opportunities for UMH Properties and Apartment Income
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between UMH and Apartment is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding UMH Properties and Apartment Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apartment Income REIT and UMH Properties 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 UMH Properties are associated (or correlated) with Apartment Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apartment Income REIT has no effect on the direction of UMH Properties i.e., UMH Properties and Apartment Income go up and down completely randomly.
Pair Corralation between UMH Properties and Apartment Income
If you would invest 1,863 in UMH Properties on August 27, 2024 and sell it today you would earn a total of 61.00 from holding UMH Properties or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
UMH Properties vs. Apartment Income REIT
Performance |
| Timeline |
| UMH Properties |
| Apartment Income REIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UMH Properties and Apartment Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UMH Properties and Apartment Income
The main advantage of trading using opposite UMH Properties and Apartment Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UMH Properties position performs unexpectedly, Apartment Income 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 Apartment Income will offset losses from the drop in Apartment Income's long position.| UMH Properties vs. Sun Communities | UMH Properties vs. Clipper Realty | UMH Properties vs. UDR Inc | UMH Properties vs. American Homes 4 |
| Apartment Income vs. Clipper Realty | Apartment Income vs. UDR Inc | Apartment Income vs. Nexpoint Residential Trust | Apartment Income vs. BRT Realty Trust |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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