Correlation Between Douglas Emmett and Mack Cali
Can any of the company-specific risk be diversified away by investing in both Douglas Emmett and Mack Cali 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 Douglas Emmett and Mack Cali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Douglas Emmett and Mack Cali Realty, you can compare the effects of market volatilities on Douglas Emmett and Mack Cali 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 Douglas Emmett with a short position of Mack Cali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Douglas Emmett and Mack Cali.
Diversification Opportunities for Douglas Emmett and Mack Cali
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Douglas and Mack is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Douglas Emmett and Mack Cali Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mack Cali Realty and Douglas Emmett 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 Douglas Emmett are associated (or correlated) with Mack Cali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mack Cali Realty has no effect on the direction of Douglas Emmett i.e., Douglas Emmett and Mack Cali go up and down completely randomly.
Pair Corralation between Douglas Emmett and Mack Cali
If you would invest 1,192 in Douglas Emmett on January 26, 2024 and sell it today you would earn a total of 165.00 from holding Douglas Emmett or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Douglas Emmett vs. Mack Cali Realty
Performance |
| Timeline |
| Douglas Emmett |
| Mack Cali Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Douglas Emmett and Mack Cali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Douglas Emmett and Mack Cali
The main advantage of trading using opposite Douglas Emmett and Mack Cali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Douglas Emmett position performs unexpectedly, Mack Cali 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 Mack Cali will offset losses from the drop in Mack Cali's long position.| Douglas Emmett vs. Equity Commonwealth | Douglas Emmett vs. Piedmont Office Realty | Douglas Emmett vs. Hudson Pacific Properties |
| Mack Cali vs. Joby Aviation | Mack Cali vs. Inter Parfums | Mack Cali vs. Pentair PLC | Mack Cali vs. Corporacion America Airports |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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