Correlation Between Acadia Realty and QUALIGEN THERNEW

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

By analyzing existing cross correlation between Acadia Realty Trust and QUALIGEN THERNEW DL 001, you can compare the effects of market volatilities on Acadia Realty and QUALIGEN THERNEW 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 Acadia Realty with a short position of QUALIGEN THERNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and QUALIGEN THERNEW.

Diversification Opportunities for Acadia Realty and QUALIGEN THERNEW

-0.6

Correlation Coefficient

Acadia Realty  QUALIGEN THERNEW

Excellent diversification

The 3 months correlation between Acadia and QUALIGEN is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and QUALIGEN THERNEW DL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUALIGEN THERNEW and Acadia Realty 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 Acadia Realty Trust are associated (or correlated) with QUALIGEN THERNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUALIGEN THERNEW has no effect on the direction of Acadia Realty i.e., Acadia Realty and QUALIGEN THERNEW go up and down completely randomly.

Pair Corralation between Acadia Realty and QUALIGEN THERNEW

Assuming the 90 days horizon Acadia Realty Trust is expected to generate 0.16 times more return on investment than QUALIGEN THERNEW. However, Acadia Realty Trust is 6.33 times less risky than QUALIGEN THERNEW. It trades about 0.08 of its potential returns per unit of risk. QUALIGEN THERNEW DL 001 is currently generating about -0.01 per unit of risk. If you would invest  1,229  in Acadia Realty Trust on September 28, 2024 and sell it today you would earn a total of  1,051  from holding Acadia Realty Trust or generate 85.52% return on investment over 90 days.

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

Acadia Realty Trust  vs.  QUALIGEN THERNEW DL 001

Acadia Realty Trust

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Acadia Realty Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Acadia Realty may actually be approaching a critical reversion point that can send shares even higher in January 2025.

QUALIGEN THERNEW

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QUALIGEN THERNEW DL 001 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, QUALIGEN THERNEW reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acadia Realty and QUALIGEN THERNEW

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

The idea behind Acadia Realty Trust and QUALIGEN THERNEW DL 001 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.