Correlation Between Regency Centers and Netstreit Corp

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

By analyzing existing cross correlation between Regency Centers and Netstreit Corp, you can compare the effects of market volatilities on Regency Centers and Netstreit Corp 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 Regency Centers with a short position of Netstreit Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Netstreit Corp.

Diversification Opportunities for Regency Centers and Netstreit Corp

0.22

Correlation Coefficient

Regency Centers  Netstreit Corp

Modest diversification

The 3 months correlation between Regency and Netstreit is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and Netstreit Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netstreit Corp and Regency Centers 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 Regency Centers are associated (or correlated) with Netstreit Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netstreit Corp has no effect on the direction of Regency Centers i.e., Regency Centers and Netstreit Corp go up and down completely randomly.

Pair Corralation between Regency Centers and Netstreit Corp

Considering the 90-day investment horizon Regency Centers is expected to under-perform the Netstreit Corp. But the stock apears to be less risky and, when comparing its historical volatility, Regency Centers is 1.15 times less risky than Netstreit Corp. The stock trades about -0.19 of its potential returns per unit of risk. The Netstreit Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,410  in Netstreit Corp on October 27, 2024 and sell it today you would earn a total of  28.00  from holding Netstreit Corp or generate 1.99% return on investment over 90 days.

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

Regency Centers  vs.  Netstreit Corp

Regency Centers

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Regency Centers has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Regency Centers is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Netstreit Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Netstreit Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Regency Centers and Netstreit Corp

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

The idea behind Regency Centers and Netstreit Corp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.