Correlation Between Urstadt Biddle and Acadia Realty

Can any of the company-specific risk be diversified away by investing in both Urstadt Biddle and Acadia Realty 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 Urstadt Biddle and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Urstadt Biddle Properties and Acadia Realty Trust, you can compare the effects of market volatilities on Urstadt Biddle and Acadia Realty 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 Urstadt Biddle with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urstadt Biddle and Acadia Realty.

Diversification Opportunities for Urstadt Biddle and Acadia Realty

-0.24

Correlation Coefficient

Urstadt Biddle  Acadia Realty

Very good diversification

The 3 months correlation between Urstadt and Acadia is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Urstadt Biddle Properties and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust and Urstadt Biddle 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 Urstadt Biddle Properties are associated (or correlated) with Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Urstadt Biddle i.e., Urstadt Biddle and Acadia Realty go up and down completely randomly.

Pair Corralation between Urstadt Biddle and Acadia Realty

If you would invest  1,604  in Acadia Realty Trust on January 24, 2024 and sell it today you would earn a total of  138.00  from holding Acadia Realty Trust or generate 8.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Urstadt Biddle Properties  vs.  Acadia Realty Trust

Urstadt Biddle Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urstadt Biddle Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Urstadt Biddle is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Acadia Realty Trust

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Acadia Realty Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward-looking signals, Acadia Realty is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Urstadt Biddle and Acadia Realty

The main advantage of trading using opposite Urstadt Biddle and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urstadt Biddle position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.

The idea behind Urstadt Biddle Properties and Acadia Realty Trust 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.