Correlation Between Artis REIT and Modiv

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

By analyzing existing cross correlation between Artis REIT and Modiv Inc, you can compare the effects of market volatilities on Artis REIT and Modiv 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 Modiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artis REIT and Modiv.

Diversification Opportunities for Artis REIT and Modiv

0.5

Correlation Coefficient

Artis REIT  Modiv

Very weak diversification

The 3 months correlation between Artis and Modiv is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Artis REIT and Modiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modiv Inc 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 Modiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modiv Inc has no effect on the direction of Artis REIT i.e., Artis REIT and Modiv go up and down completely randomly.

Pair Corralation between Artis REIT and Modiv

Assuming the 90 days horizon Artis REIT is expected to generate 1.31 times more return on investment than Modiv. However, Artis REIT is 1.31 times more volatile than Modiv Inc. It trades about -0.02 of its potential returns per unit of risk. Modiv Inc is currently generating about -0.15 per unit of risk. If you would invest  505.00  in Artis REIT on October 25, 2024 and sell it today you would lose (2.00) from holding Artis REIT or give up 0.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Artis REIT  vs.  Modiv Inc

Artis REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artis REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Modiv Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Modiv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Modiv is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artis REIT and Modiv

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

The idea behind Artis REIT and Modiv Inc 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.