Correlation Between Acadia Realty and Yamaha Corp
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Yamaha Corp 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 Yamaha Corp 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 Yamaha Corp, you can compare the effects of market volatilities on Acadia Realty and Yamaha Corp 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 Yamaha Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Yamaha Corp.
Diversification Opportunities for Acadia Realty and Yamaha Corp
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acadia and Yamaha is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Yamaha Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha Corp 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 Yamaha Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha Corp has no effect on the direction of Acadia Realty i.e., Acadia Realty and Yamaha Corp go up and down completely randomly.
Pair Corralation between Acadia Realty and Yamaha Corp
Assuming the 90 days horizon Acadia Realty Trust is expected to generate 0.86 times more return on investment than Yamaha Corp. However, Acadia Realty Trust is 1.16 times less risky than Yamaha Corp. It trades about 0.08 of its potential returns per unit of risk. Yamaha Corp is currently generating about -0.04 per unit of risk. If you would invest 1,211 in Acadia Realty Trust on September 23, 2024 and sell it today you would earn a total of 1,069 from holding Acadia Realty Trust or generate 88.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Yamaha Corp
Performance |
| Timeline |
| Acadia Realty Trust |
| Yamaha Corp |
Acadia Realty and Yamaha Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Yamaha Corp
The main advantage of trading using opposite Acadia Realty and Yamaha Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Yamaha Corp 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 Yamaha Corp will offset losses from the drop in Yamaha Corp'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 |
| Yamaha Corp vs. Cogent Communications Holdings | Yamaha Corp vs. AGRICULTBK HADR25 YC | Yamaha Corp vs. Dairy Farm International | Yamaha Corp vs. Charter Communications |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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