Correlation Between W P and Artis REIT
Can any of the company-specific risk be diversified away by investing in both W P and Artis REIT 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 W P and Artis REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between W P Carey and Artis REIT, you can compare the effects of market volatilities on W P and Artis REIT 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 W P with a short position of Artis REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of W P and Artis REIT.
Diversification Opportunities for W P and Artis REIT
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WPC and Artis is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding W P Carey and Artis REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis REIT and W P 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 W P Carey are associated (or correlated) with Artis REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis REIT has no effect on the direction of W P i.e., W P and Artis REIT go up and down completely randomly.
Pair Corralation between W P and Artis REIT
Considering the 90-day investment horizon W P Carey is expected to generate 0.84 times more return on investment than Artis REIT. However, W P Carey is 1.19 times less risky than Artis REIT. It trades about -0.01 of its potential returns per unit of risk. Artis REIT is currently generating about -0.4 per unit of risk. If you would invest 5,573 in W P Carey on September 12, 2024 and sell it today you would lose (19.00) from holding W P Carey or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
W P Carey vs. Artis REIT
Performance |
| Timeline |
| W P Carey |
| Artis REIT |
W P and Artis REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with W P and Artis REIT
The main advantage of trading using opposite W P and Artis REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if W P position performs unexpectedly, Artis REIT 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 Artis REIT will offset losses from the drop in Artis REIT's long position.| W P vs. STAG Industrial | W P vs. National Retail Properties | W P vs. Medical Properties Trust | W P vs. Omega Healthcare Investors |
| Artis REIT vs. Armada Hoffler Properties | Artis REIT vs. Ascott Residence Trust | Artis REIT vs. Armada Hflr Pr | Artis REIT vs. Modiv Inc |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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