Equity Residential Correlations

EQR Stock

USD 69.81 0.36 0.51%

The current 90-days correlation between Equity Residential and Essex Property Trust is 0.92 (i.e., Almost no diversification). The correlation of Equity Residential 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.

Equity Residential Correlation With Market

Weak diversification

The correlation between Equity Residential and DJI is 0.36 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Equity Residential and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Equity Residential. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in producer price index.

To learn how to invest in Equity Stock, please use our How to Invest in Equity Residential guide.

Moving together with Equity Stock

0.65	EPRT	Essential Properties	Pair Corr
0.66	FCPT	Four Corners Property	Pair Corr
0.83	AVB	AvalonBay Communities	Pair Corr
0.66	BRX	Brixmor Property	Pair Corr

Moving against Equity Stock

0.41	LB	LandBridge Company	Pair Corr
0.35	PW	Power REIT Earnings Call This Week	Pair Corr

Related Correlations Analysis

	ESS	MAA	CPT	UDR	AVB	NXRT
ESS		0.94	0.93	0.88	0.35	0.25	ESS
MAA	0.94		0.94	0.88	0.2	0.16	MAA
CPT	0.93	0.94		0.93	0.35	0.35	CPT
UDR	0.88	0.88	0.93		0.43	0.58	UDR
AVB	0.35	0.2	0.35	0.43		0.64	AVB
NXRT	0.25	0.16	0.35	0.58	0.64		NXRT
	ESS	MAA	CPT	UDR	AVB	NXRT

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Risk-Adjusted Indicators

There is a big difference between Equity Stock performing well and Equity Residential 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 Equity Residential'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
ESS	1.07	0.06	0.05	0.02	1.50	(1.01)	2.21	(1.99)	6.26
MAA	1.03	0.08	0.09	0.15	1.27	(1.12)	1.70	(1.96)	6.07
CPT	1.08	0.03	0.05	0.00	1.46	(1.02)	2.12	(2.09)	5.21
UDR	1.02	0.01	0.00	(0.05)	0.00	0.00	1.90	(2.03)	6.14
AVB	0.95	(0.07)	0.00	(0.21)	0.00	0.00	2.29	(2.23)	5.27
NXRT	1.39	(0.18)	0.00	(0.30)	0.00	0.00	2.12	(2.43)	6.46

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