Correlation Between Whitestone REIT and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Whitestone REIT 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 Whitestone REIT and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitestone REIT and Acadia Realty Trust, you can compare the effects of market volatilities on Whitestone REIT 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 Whitestone REIT with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitestone REIT and Acadia Realty.
Diversification Opportunities for Whitestone REIT and Acadia Realty
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Whitestone and Acadia is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Whitestone REIT 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 Whitestone REIT 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 Whitestone REIT 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 Whitestone REIT i.e., Whitestone REIT and Acadia Realty go up and down completely randomly.
Pair Corralation between Whitestone REIT and Acadia Realty
Considering the 90-day investment horizon Whitestone REIT is expected to generate 1.29 times less return on investment than Acadia Realty. In addition to that, Whitestone REIT is 1.24 times more volatile than Acadia Realty Trust. It trades about 0.21 of its total potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.33 per unit of volatility. If you would invest 2,435 in Acadia Realty Trust on August 30, 2024 and sell it today you would earn a total of 173.00 from holding Acadia Realty Trust or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whitestone REIT vs. Acadia Realty Trust
Performance |
| Timeline |
| Whitestone REIT |
| Acadia Realty Trust |
Whitestone REIT and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitestone REIT and Acadia Realty
The main advantage of trading using opposite Whitestone REIT and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitestone REIT 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.| Whitestone REIT vs. Regency Centers | Whitestone REIT vs. Saul Centers | Whitestone REIT vs. Retail Opportunity Investments | Whitestone REIT vs. Site Centers Corp |
| Acadia Realty vs. CBL Associates Properties | Acadia Realty vs. Cedar Realty Trust | Acadia Realty vs. Simon Property Group | Acadia Realty vs. Realty Income |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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