Correlation Between Agree Realty and PhenixFIN 525
Can any of the company-specific risk be diversified away by investing in both Agree Realty and PhenixFIN 525 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 Agree Realty and PhenixFIN 525 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and PhenixFIN 525, you can compare the effects of market volatilities on Agree Realty and PhenixFIN 525 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 Agree Realty with a short position of PhenixFIN 525. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and PhenixFIN 525.
Diversification Opportunities for Agree Realty and PhenixFIN 525
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agree and PhenixFIN is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and PhenixFIN 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PhenixFIN 525 and Agree 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 Agree Realty are associated (or correlated) with PhenixFIN 525. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PhenixFIN 525 has no effect on the direction of Agree Realty i.e., Agree Realty and PhenixFIN 525 go up and down completely randomly.
Pair Corralation between Agree Realty and PhenixFIN 525
Assuming the 90 days trading horizon Agree Realty is expected to generate 0.85 times more return on investment than PhenixFIN 525. However, Agree Realty is 1.17 times less risky than PhenixFIN 525. It trades about 0.05 of its potential returns per unit of risk. PhenixFIN 525 is currently generating about 0.04 per unit of risk. If you would invest 1,476 in Agree Realty on September 24, 2024 and sell it today you would earn a total of 377.00 from holding Agree Realty or generate 25.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Agree Realty vs. PhenixFIN 525
Performance |
Timeline |
Agree Realty |
PhenixFIN 525 |
Agree Realty and PhenixFIN 525 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agree Realty and PhenixFIN 525
The main advantage of trading using opposite Agree Realty and PhenixFIN 525 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, PhenixFIN 525 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 PhenixFIN 525 will offset losses from the drop in PhenixFIN 525's long position.Agree Realty vs. Federal Realty Investment | Agree Realty vs. Vornado Realty Trust | Agree Realty vs. Rexford Industrial Realty | Agree Realty vs. Digital Realty Trust |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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