Correlation Between One Liberty and Maxus Realty

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

By analyzing existing cross correlation between One Liberty Properties and Maxus Realty Trust, you can compare the effects of market volatilities on One Liberty and Maxus Realty 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 One Liberty with a short position of Maxus Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Liberty and Maxus Realty.

Diversification Opportunities for One Liberty and Maxus Realty

0.0

Correlation Coefficient

One Liberty  Maxus Realty

Pay attention - limited upside

The 3 months correlation between One and Maxus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties and Maxus Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxus Realty Trust and One Liberty 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 One Liberty Properties are associated (or correlated) with Maxus Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxus Realty Trust has no effect on the direction of One Liberty i.e., One Liberty and Maxus Realty go up and down completely randomly.

Pair Corralation between One Liberty and Maxus Realty

If you would invest (100.00) in Maxus Realty Trust on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Maxus Realty Trust or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

One Liberty Properties  vs.  Maxus Realty Trust

One Liberty Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days One Liberty Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, One Liberty is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Maxus Realty Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maxus Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Maxus Realty is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with One Liberty and Maxus Realty

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

The idea behind One Liberty Properties and Maxus Realty Trust 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.