Real Estate Correlations

AREWX Fund

USD 25.47 0.19 0.74%

The current 90-days correlation between Real Estate Fund and Realty Income is 0.78 (i.e., Poor diversification). The correlation of Real Estate 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Real Estate Correlation With Market

Modest diversification

The correlation between Real Estate Fund and DJI is 0.21 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Fund and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Real Estate Fund. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in housing.

Moving together with Real Mutual Fund

0.64	O	Realty Income	Pair Corr
0.79	FR	First Industrial Realty	Pair Corr
0.68	HR	Healthcare Realty Trust	Pair Corr
0.89	KW	Kennedy Wilson Holdings	Pair Corr
0.82	WY	Weyerhaeuser Fiscal Year End 23rd of January 2025	Pair Corr
0.89	VICI	VICI Properties	Pair Corr
0.79	ELME	Elme Communities	Pair Corr
0.82	EPRT	Essential Properties	Pair Corr
0.68	WELL	Welltower	Pair Corr
0.65	ESBA	Empire State Realty	Pair Corr
0.79	ESRT	Empire State Realty	Pair Corr
0.72	EXPI	eXp World Holdings	Pair Corr
0.65	BFS-PD	Saul Centers	Pair Corr

Moving against Real Mutual Fund

0.44	MITT-PC	AG Mortgage Investment	Pair Corr
0.42	OZ	Belpointe PREP LLC	Pair Corr
0.35	VTMX	Corporacin Inmobiliaria	Pair Corr

Related Correlations Analysis

	O	DX	FR	HR	KW	OZ	PK	PW	RC	UE
O		-0.67	0.92	0.22	0.43	-0.79	-0.58	-0.13	-0.21	-0.16	O
DX	-0.67		-0.59	0.14	-0.11	0.75	0.64	0.28	0.47	0.24	DX
FR	0.92	-0.59		0.33	0.61	-0.66	-0.33	-0.15	0.03	0.09	FR
HR	0.22	0.14	0.33		0.69	0.07	0.35	0.28	0.34	0.48	HR
KW	0.43	-0.11	0.61	0.69		-0.21	0.26	0.11	0.22	0.68	KW
OZ	-0.79	0.75	-0.66	0.07	-0.21		0.71	0.3	0.51	0.15	OZ
PK	-0.58	0.64	-0.33	0.35	0.26	0.71		0.46	0.63	0.45	PK
PW	-0.13	0.28	-0.15	0.28	0.11	0.3	0.46		0.28	-0.12	PW
RC	-0.21	0.47	0.03	0.34	0.22	0.51	0.63	0.28		0.18	RC
UE	-0.16	0.24	0.09	0.48	0.68	0.15	0.45	-0.12	0.18		UE
	O	DX	FR	HR	KW	OZ	PK	PW	RC	UE

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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

FR	+ 0.92	O
OZ	+ 0.75	DX
PK	+ 0.71	OZ
KW	+ 0.69	HR
UE	+ 0.68	KW
PK	+ 0.64	DX

High negative correlations

OZ	- 0.79	O
DX	- 0.67	O
OZ	- 0.66	FR
FR	- 0.59	DX
PK	- 0.58	O
PK	- 0.33	FR

Risk-Adjusted Indicators

There is a big difference between Real Mutual Fund performing well and Real Estate Mutual Fund 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 Real Estate's 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
O	0.88	0.00	0.00	0.00	0.00	0.00	1.38	(2.00)	5.16
DX	0.63	0.07	0.07	0.35	0.72	(0.66)	1.13	(1.19)	3.80
FR	0.91	(0.14)	0.00	(0.68)	0.00	0.00	1.51	(1.74)	6.12
HR	1.31	(0.09)	0.00	(0.82)	0.00	0.00	2.01	(2.81)	9.00
KW	1.48	(0.15)	0.00	(0.88)	0.00	0.00	2.43	(3.05)	9.66
OZ	1.41	0.00	(0.01)	(0.02)	2.26	(1.62)	2.91	(3.80)	15.72
PK	1.23	0.05	0.02	0.16	1.67	(1.29)	2.98	(2.17)	12.08
PW	8.10	1.61	0.21	0.41	6.68	(11.52)	16.15	(12.84)	119.44
RC	1.31	(0.03)	0.00	(0.16)	0.00	0.00	2.68	(3.29)	8.69
UE	0.92	(0.02)	0.00	(0.06)	0.00	0.00	1.73	(1.75)	6.40

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