Correlation Between Ascendas Real and STAG Industrial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ascendas Real and STAG Industrial 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 Ascendas Real and STAG Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendas Real Estate and STAG Industrial, you can compare the effects of market volatilities on Ascendas Real and STAG Industrial 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 Ascendas Real with a short position of STAG Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas Real and STAG Industrial.

Diversification Opportunities for Ascendas Real and STAG Industrial

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Ascendas and STAG is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas Real Estate and STAG Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial and Ascendas Real 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 Ascendas Real Estate are associated (or correlated) with STAG Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial has no effect on the direction of Ascendas Real i.e., Ascendas Real and STAG Industrial go up and down completely randomly.

Pair Corralation between Ascendas Real and STAG Industrial

Assuming the 90 days horizon Ascendas Real Estate is expected to generate 1.32 times more return on investment than STAG Industrial. However, Ascendas Real is 1.32 times more volatile than STAG Industrial. It trades about 0.03 of its potential returns per unit of risk. STAG Industrial is currently generating about 0.03 per unit of risk. If you would invest  158.00  in Ascendas Real Estate on September 10, 2024 and sell it today you would earn a total of  18.00  from holding Ascendas Real Estate or generate 11.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ascendas Real Estate  vs.  STAG Industrial

 Performance 
       Timeline  
Ascendas Real Estate 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

0 of 100

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

Ascendas Real and STAG Industrial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ascendas Real and STAG Industrial

The main advantage of trading using opposite Ascendas Real and STAG Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas Real position performs unexpectedly, STAG Industrial 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 STAG Industrial will offset losses from the drop in STAG Industrial's long position.
The idea behind Ascendas Real Estate and STAG Industrial 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account