Correlation Analysis Between Mid America and American Homes

This module allows you to analyze existing cross correlation between Mid America Apartment Communiti and American Homes 4 Rent. You can compare the effects of market volatilities on Mid America and American Homes 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 Mid America with a short position of American Homes. See also your portfolio center. Please also check ongoing floating volatility patterns of Mid America and American Homes.
Horizon     30 Days    Login   to change
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Comparative Performance

Mid America Apartment  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Mid America Apartment Communiti are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Despite somewhat uncertain basic indicators, Mid America may actually be approaching a critical reversion point that can send shares even higher in October 2019.
American Homes 4  
00

Risk-Adjusted Performance

Over the last 30 days American Homes 4 Rent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, American Homes is not utilizing all of its potentials. The late stock price disturbance, may contribute to mid-run losses for the stockholder.

Mid America and American Homes Volatility Contrast

 Predicted Return Density 
      Returns 

Mid America Apartment Communit  vs.  American Homes 4 Rent

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Mid America Apartment Communiti is expected to generate 0.95 times more return on investment than American Homes. However, Mid America Apartment Communiti is 1.05 times less risky than American Homes. It trades about 0.14 of its potential returns per unit of risk. American Homes 4 Rent is currently generating about -0.01 per unit of risk. If you would invest  11,903  in Mid America Apartment Communiti on August 19, 2019 and sell it today you would earn a total of  1,064  from holding Mid America Apartment Communiti or generate 8.94% return on investment over 30 days.

Pair Corralation between Mid America and American Homes

0.87
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Mid America and American Homes

Mid America Apartment Communit diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Mid America Apartment Communit and American Homes 4 Rent in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Homes 4 and Mid America 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 Mid America Apartment Communiti are associated (or correlated) with American Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Homes 4 has no effect on the direction of Mid America i.e. Mid America and American Homes go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.


 
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