Correlation Between Retail Opportunity and Alexanders
Can any of the company-specific risk be diversified away by investing in both Retail Opportunity and Alexanders 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 Retail Opportunity and Alexanders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Opportunity Investments and Alexanders, you can compare the effects of market volatilities on Retail Opportunity and Alexanders 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 Retail Opportunity with a short position of Alexanders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Opportunity and Alexanders.
Diversification Opportunities for Retail Opportunity and Alexanders
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Retail and Alexanders is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders and Retail Opportunity 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 Retail Opportunity Investments are associated (or correlated) with Alexanders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexanders has no effect on the direction of Retail Opportunity i.e., Retail Opportunity and Alexanders go up and down completely randomly.
Pair Corralation between Retail Opportunity and Alexanders
Given the investment horizon of 90 days Retail Opportunity is expected to generate 2.36 times less return on investment than Alexanders. But when comparing it to its historical volatility, Retail Opportunity Investments is 11.55 times less risky than Alexanders. It trades about 0.18 of its potential returns per unit of risk. Alexanders is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 21,122 in Alexanders on December 8, 2024 and sell it today you would earn a total of 618.00 from holding Alexanders or generate 2.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 73.77% |
Values | Daily Returns |
Retail Opportunity Investments vs. Alexanders
Performance |
Timeline |
Retail Opportunity |
Risk-Adjusted Performance
Good
Weak | Strong |
Alexanders |
Retail Opportunity and Alexanders Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Retail Opportunity and Alexanders
The main advantage of trading using opposite Retail Opportunity and Alexanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Opportunity position performs unexpectedly, Alexanders 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 Alexanders will offset losses from the drop in Alexanders' long position.Retail Opportunity vs. Kite Realty Group | Retail Opportunity vs. Rithm Property Trust | Retail Opportunity vs. Urban Edge Properties | Retail Opportunity vs. Acadia Realty Trust |
Alexanders vs. Saul Centers | Alexanders vs. Urban Edge Properties | Alexanders vs. Rithm Property Trust | Alexanders vs. Site Centers Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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