Correlation Between Acadia Realty and Performance Food
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Performance Food 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 Performance Food 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 Performance Food Group, you can compare the effects of market volatilities on Acadia Realty and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Performance Food.
Diversification Opportunities for Acadia Realty and Performance Food
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Acadia and Performance is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of Acadia Realty i.e., Acadia Realty and Performance Food go up and down completely randomly.
Pair Corralation between Acadia Realty and Performance Food
Assuming the 90 days horizon Acadia Realty Trust is expected to generate 0.91 times more return on investment than Performance Food. However, Acadia Realty Trust is 1.09 times less risky than Performance Food. It trades about 0.12 of its potential returns per unit of risk. Performance Food Group is currently generating about 0.08 per unit of risk. If you would invest 1,360 in Acadia Realty Trust on August 26, 2024 and sell it today you would earn a total of 1,060 from holding Acadia Realty Trust or generate 77.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Performance Food Group
Performance |
| Timeline |
| Acadia Realty Trust |
| Performance Food |
Acadia Realty and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Performance Food
The main advantage of trading using opposite Acadia Realty and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| Acadia Realty vs. Performance Food Group | Acadia Realty vs. Molson Coors Beverage | Acadia Realty vs. Cal Maine Foods | Acadia Realty vs. United Breweries Co |
| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |