Correlation Between Artis REIT and Land Securities

Can any of the company-specific risk be diversified away by investing in both Artis REIT and Land Securities 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 Artis REIT and Land Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artis REIT and Land Securities Group, you can compare the effects of market volatilities on Artis REIT and Land Securities 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 Artis REIT with a short position of Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artis REIT and Land Securities.

Diversification Opportunities for Artis REIT and Land Securities

0.61

Correlation Coefficient

Artis REIT  Land Securities

Poor diversification

The 3 months correlation between Artis and Land is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Artis REIT and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group and Artis REIT 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 Artis REIT are associated (or correlated) with Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Artis REIT i.e., Artis REIT and Land Securities go up and down completely randomly.

Pair Corralation between Artis REIT and Land Securities

Assuming the 90 days horizon Artis REIT is expected to generate 0.85 times more return on investment than Land Securities. However, Artis REIT is 1.18 times less risky than Land Securities. It trades about 0.14 of its potential returns per unit of risk. Land Securities Group is currently generating about 0.06 per unit of risk. If you would invest  484.00  in Artis REIT on December 19, 2024 and sell it today you would earn a total of  53.00  from holding Artis REIT or generate 10.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	91.67%
Values	Daily Returns

Artis REIT  vs.  Land Securities Group

Artis REIT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artis REIT are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Artis REIT may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Land Securities Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Land Securities Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Land Securities may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Artis REIT and Land Securities

The main advantage of trading using opposite Artis REIT and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artis REIT position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' long position.

The idea behind Artis REIT and Land Securities Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.