Correlation Analysis Between American Campus and AvalonBay Communities

This module allows you to analyze existing cross correlation between American Campus Communities and AvalonBay Communities. You can compare the effects of market volatilities on American Campus and AvalonBay Communities 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 American Campus with a short position of AvalonBay Communities. See also your portfolio center. Please also check ongoing floating volatility patterns of American Campus and AvalonBay Communities.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

American Campus Comm  
00

Risk-Adjusted Performance

Over the last 30 days American Campus Communities has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, American Campus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
AvalonBay Communities  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in AvalonBay Communities are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, AvalonBay Communities is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

American Campus and AvalonBay Communities Volatility Contrast

 Predicted Return Density 
      Returns 

American Campus Communities In  vs.  AvalonBay Communities Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Campus Communities is expected to under-perform the AvalonBay Communities. But the stock apears to be less risky and, when comparing its historical volatility, American Campus Communities is 1.09 times less risky than AvalonBay Communities. The stock trades about -0.02 of its potential returns per unit of risk. The AvalonBay Communities is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  21,097  in AvalonBay Communities on September 15, 2019 and sell it today you would earn a total of  711.00  from holding AvalonBay Communities or generate 3.37% return on investment over 30 days.

Pair Corralation between American Campus and AvalonBay Communities

0.75
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for American Campus and AvalonBay Communities

American Campus Communities In diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Campus Communities In and AvalonBay Communities Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AvalonBay Communities and American Campus 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 American Campus Communities are associated (or correlated) with AvalonBay Communities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AvalonBay Communities has no effect on the direction of American Campus i.e. American Campus and AvalonBay Communities go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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