Correlation Between My Size and Realty Income
Can any of the company-specific risk be diversified away by investing in both My Size and Realty Income 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 My Size and Realty Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between My Size and Realty Income Corp, you can compare the effects of market volatilities on My Size and Realty Income 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 My Size with a short position of Realty Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Size and Realty Income.
Diversification Opportunities for My Size and Realty Income
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between MYSZ and Realty is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding My Size and Realty Income Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realty me Corp and My Size 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 My Size are associated (or correlated) with Realty Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realty me Corp has no effect on the direction of My Size i.e., My Size and Realty Income go up and down completely randomly.
Pair Corralation between My Size and Realty Income
Given the investment horizon of 90 days My Size is expected to under-perform the Realty Income. In addition to that, My Size is 4.62 times more volatile than Realty Income Corp. It trades about -0.05 of its total potential returns per unit of risk. Realty Income Corp is currently generating about -0.01 per unit of volatility. If you would invest 5,997 in Realty Income Corp on January 26, 2024 and sell it today you would lose (658.00) from holding Realty Income Corp or give up 10.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
My Size vs. Realty Income Corp
Performance |
| Timeline |
| My Size |
| Realty me Corp |
My Size and Realty Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with My Size and Realty Income
The main advantage of trading using opposite My Size and Realty Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Size position performs unexpectedly, Realty Income 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 Realty Income will offset losses from the drop in Realty Income's long position.The idea behind My Size and Realty Income 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.| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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