Correlation Between Acadia Realty and REVLTNRY CNCPT
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and REVLTNRY CNCPT 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 REVLTNRY CNCPT 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 REVLTNRY CNCPT, you can compare the effects of market volatilities on Acadia Realty and REVLTNRY CNCPT 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 REVLTNRY CNCPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and REVLTNRY CNCPT.
Diversification Opportunities for Acadia Realty and REVLTNRY CNCPT
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Acadia and REVLTNRY is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and REVLTNRY CNCPT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REVLTNRY CNCPT 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 REVLTNRY CNCPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REVLTNRY CNCPT has no effect on the direction of Acadia Realty i.e., Acadia Realty and REVLTNRY CNCPT go up and down completely randomly.
Pair Corralation between Acadia Realty and REVLTNRY CNCPT
Assuming the 90 days horizon Acadia Realty is expected to generate 69.38 times less return on investment than REVLTNRY CNCPT. But when comparing it to its historical volatility, Acadia Realty Trust is 97.36 times less risky than REVLTNRY CNCPT. It trades about 0.17 of its potential returns per unit of risk. REVLTNRY CNCPT is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.55 in REVLTNRY CNCPT on September 24, 2024 and sell it today you would earn a total of 0.00 from holding REVLTNRY CNCPT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. REVLTNRY CNCPT
Performance |
| Timeline |
| Acadia Realty Trust |
| REVLTNRY CNCPT |
Acadia Realty and REVLTNRY CNCPT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and REVLTNRY CNCPT
The main advantage of trading using opposite Acadia Realty and REVLTNRY CNCPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, REVLTNRY CNCPT 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 REVLTNRY CNCPT will offset losses from the drop in REVLTNRY CNCPT's long position.| Acadia Realty vs. Simon Property Group | Acadia Realty vs. Realty Income | Acadia Realty vs. Link Real Estate | Acadia Realty vs. Kimco Realty |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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