Correlation Between Acadia Realty and Apple
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Acadia Realty and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Apple.
Diversification Opportunities for Acadia Realty and Apple
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acadia and Apple is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Acadia Realty i.e., Acadia Realty and Apple go up and down completely randomly.
Pair Corralation between Acadia Realty and Apple
Considering the 90-day investment horizon Acadia Realty Trust is expected to generate 1.33 times more return on investment than Apple. However, Acadia Realty is 1.33 times more volatile than Apple Inc. It trades about 0.25 of its potential returns per unit of risk. Apple Inc is currently generating about -0.07 per unit of risk. If you would invest 1,604 in Acadia Realty Trust on January 25, 2024 and sell it today you would earn a total of 162.00 from holding Acadia Realty Trust or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Apple Inc
Performance |
| Timeline |
| Acadia Realty Trust |
| Apple Inc |
Acadia Realty and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Apple
The main advantage of trading using opposite Acadia Realty and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp | Acadia Realty vs. Retail Opportunity Investments |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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