Correlation Between Acadia Realty and GRUPO ECOENER
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and GRUPO ECOENER 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 Acadia Realty and GRUPO ECOENER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadia Realty Trust and GRUPO ECOENER EO, you can compare the effects of market volatilities on Acadia Realty and GRUPO ECOENER 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 Acadia Realty with a short position of GRUPO ECOENER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and GRUPO ECOENER.
Diversification Opportunities for Acadia Realty and GRUPO ECOENER
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acadia and GRUPO is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and GRUPO ECOENER EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO ECOENER EO and Acadia Realty 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 Acadia Realty Trust are associated (or correlated) with GRUPO ECOENER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO ECOENER EO has no effect on the direction of Acadia Realty i.e., Acadia Realty and GRUPO ECOENER go up and down completely randomly.
Pair Corralation between Acadia Realty and GRUPO ECOENER
Assuming the 90 days horizon Acadia Realty is expected to generate 16.45 times less return on investment than GRUPO ECOENER. But when comparing it to its historical volatility, Acadia Realty Trust is 1.54 times less risky than GRUPO ECOENER. It trades about 0.02 of its potential returns per unit of risk. GRUPO ECOENER EO is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 397.00 in GRUPO ECOENER EO on October 12, 2024 and sell it today you would earn a total of 90.00 from holding GRUPO ECOENER EO or generate 22.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. GRUPO ECOENER EO
Performance |
| Timeline |
| Acadia Realty Trust |
| GRUPO ECOENER EO |
Acadia Realty and GRUPO ECOENER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and GRUPO ECOENER
The main advantage of trading using opposite Acadia Realty and GRUPO ECOENER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, GRUPO ECOENER 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 GRUPO ECOENER will offset losses from the drop in GRUPO ECOENER's long position.| Acadia Realty vs. Easy Software AG | Acadia Realty vs. Kingdee International Software | Acadia Realty vs. Shenandoah Telecommunications | Acadia Realty vs. Ribbon Communications |
| GRUPO ECOENER vs. HANOVER INSURANCE | GRUPO ECOENER vs. MidCap Financial Investment | GRUPO ECOENER vs. ECHO INVESTMENT ZY | GRUPO ECOENER vs. Vienna Insurance Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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