Correlation Between Rithm Property and Federal Realty
Can any of the company-specific risk be diversified away by investing in both Rithm Property and Federal 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 Rithm Property and Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Property Trust and Federal Realty Investment, you can compare the effects of market volatilities on Rithm Property and Federal 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 Rithm Property with a short position of Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Federal Realty.
Diversification Opportunities for Rithm Property and Federal Realty
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rithm and Federal is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment and Rithm Property 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 Rithm Property Trust are associated (or correlated) with Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of Rithm Property i.e., Rithm Property and Federal Realty go up and down completely randomly.
Pair Corralation between Rithm Property and Federal Realty
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Federal Realty. In addition to that, Rithm Property is 2.19 times more volatile than Federal Realty Investment. It trades about -0.04 of its total potential returns per unit of risk. Federal Realty Investment is currently generating about 0.09 per unit of volatility. If you would invest 10,000 in Federal Realty Investment on September 26, 2024 and sell it today you would earn a total of 1,273 from holding Federal Realty Investment or generate 12.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Rithm Property Trust vs. Federal Realty Investment
Performance |
Timeline |
Rithm Property Trust |
Federal Realty Investment |
Rithm Property and Federal Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rithm Property and Federal Realty
The main advantage of trading using opposite Rithm Property and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property position performs unexpectedly, Federal 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 Federal Realty will offset losses from the drop in Federal Realty's long position.Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties Corp |
Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco Realty |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |