American Homes Correlations

AMH-PH Preferred Stock

USD 24.86 0.40 1.64%

The current 90-days correlation between American Homes 4 and Mid America Apartment Communities is -0.17 (i.e., Good diversification). The correlation of American Homes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

American Homes Correlation With Market

Modest diversification

The correlation between American Homes 4 and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Homes 4 and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to American Homes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Homes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Homes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Homes 4 to buy it.

Moving together with American Preferred Stock

0.84	AMH-PG	American Homes 4	Pair Corr
0.67	WY	Weyerhaeuser Fiscal Year End 23rd of January 2025	Pair Corr
0.68	ADC-PA	Agree Realty	Pair Corr
0.87	VNO-PL	Vornado Realty Trust	Pair Corr
0.82	VNO-PM	Vornado Realty Trust	Pair Corr
0.76	VNO-PN	Vornado Realty Trust	Pair Corr
0.86	VNO-PO	Vornado Realty Trust	Pair Corr
0.75	MITT-PA	AG Mortgage Investment	Pair Corr
0.66	MITT-PB	AG Mortgage Investment	Pair Corr

Moving against American Preferred Stock

0.43	RC	Ready Capital Corp	Pair Corr
0.37	DOUG	Douglas Elliman	Pair Corr
0.34	AHT-PF	Ashford Hospitality Trust	Pair Corr
0.65	EMITF	Elbit Imaging	Pair Corr

Related Correlations Analysis

	MAA-PI	UMH-PD	AMH	AMH-PG	BRT	NXRT	CSR	VRE
MAA-PI		0.0	-0.56	0.45	-0.11	-0.28	-0.45	0.2	MAA-PI
UMH-PD	0.0		0.05	0.7	-0.39	-0.28	-0.22	-0.17	UMH-PD
AMH	-0.56	0.05		-0.25	0.37	0.53	0.58	0.28	AMH
AMH-PG	0.45	0.7	-0.25		-0.53	-0.63	-0.58	-0.19	AMH-PG
BRT	-0.11	-0.39	0.37	-0.53		0.87	0.75	0.85	BRT
NXRT	-0.28	-0.28	0.53	-0.63	0.87		0.87	0.74	NXRT
CSR	-0.45	-0.22	0.58	-0.58	0.75	0.87		0.63	CSR
VRE	0.2	-0.17	0.28	-0.19	0.85	0.74	0.63		VRE
	MAA-PI	UMH-PD	AMH	AMH-PG	BRT	NXRT	CSR	VRE

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

NXRT	+ 0.87	BRT
CSR	+ 0.87	NXRT
VRE	+ 0.85	BRT
CSR	+ 0.75	BRT
VRE	+ 0.74	NXRT
AMH-PG	+ 0.7	UMH-PD

High negative correlations

NXRT	- 0.63	AMH-PG
CSR	- 0.58	AMH-PG
AMH	- 0.56	MAA-PI
BRT	- 0.53	AMH-PG
CSR	- 0.45	MAA-PI
BRT	- 0.39	UMH-PD

Risk-Adjusted Indicators

There is a big difference between American Preferred Stock performing well and American Homes Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze American Homes' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
MAA-PI	0.74	0.11	(0.02)	(4.04)	0.78	(1.12)	1.74	(1.56)	7.37
UMH-PD	0.39	(0.04)	0.00	(0.33)	0.00	0.00	0.91	(0.88)	2.54
AMH	0.91	(0.11)	0.00	(0.04)	0.00	0.00	1.93	(2.05)	6.31
AMH-PG	0.55	0.02	(0.12)	0.29	0.75	(0.56)	1.48	(1.33)	4.20
BRT	1.42	(0.01)	0.01	0.12	1.33	(1.72)	2.63	(2.14)	10.29
NXRT	1.18	(0.08)	(0.08)	0.03	1.30	(1.38)	2.74	(2.22)	6.37
CSR	1.11	(0.07)	0.00	(0.07)	0.00	0.00	2.56	(2.21)	6.91
VRE	0.95	(0.01)	(0.04)	0.12	1.25	(0.94)	2.42	(2.08)	5.75

Be your own money manager

Our tools can tell you how much better you can do entering a position in American Homes without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Christopher Lau	Chief Officer	Profile
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