Correlation Between ACRES Commercial and Pennsylvania Real

Can any of the company-specific risk be diversified away by investing in both ACRES Commercial and Pennsylvania Real 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 ACRES Commercial and Pennsylvania Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ACRES Commercial Realty and Pennsylvania Real Estate, you can compare the effects of market volatilities on ACRES Commercial and Pennsylvania Real 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 ACRES Commercial with a short position of Pennsylvania Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACRES Commercial and Pennsylvania Real.

Diversification Opportunities for ACRES Commercial and Pennsylvania Real

0.13

Correlation Coefficient

ACRES Commercial  Pennsylvania Real

Average diversification

The 3 months correlation between ACRES and Pennsylvania is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ACRES Commercial Realty and Pennsylvania Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pennsylvania Real Estate and ACRES Commercial 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 ACRES Commercial Realty are associated (or correlated) with Pennsylvania Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pennsylvania Real Estate has no effect on the direction of ACRES Commercial i.e., ACRES Commercial and Pennsylvania Real go up and down completely randomly.

Pair Corralation between ACRES Commercial and Pennsylvania Real

If you would invest  2,499  in ACRES Commercial Realty on September 15, 2024 and sell it today you would earn a total of  19.00  from holding ACRES Commercial Realty or generate 0.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

ACRES Commercial Realty  vs.  Pennsylvania Real Estate

ACRES Commercial Realty

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ACRES Commercial Realty are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, ACRES Commercial is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pennsylvania Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pennsylvania Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Pennsylvania Real is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ACRES Commercial and Pennsylvania Real

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

The idea behind ACRES Commercial Realty and Pennsylvania Real Estate 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..