Correlation Between Empire State and Agree Realty
Can any of the company-specific risk be diversified away by investing in both Empire State and Agree 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 Empire State and Agree Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Agree Realty, you can compare the effects of market volatilities on Empire State and Agree 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 Empire State with a short position of Agree Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Agree Realty.
Diversification Opportunities for Empire State and Agree Realty
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Empire and Agree is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty and Empire State 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 Empire State Realty are associated (or correlated) with Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of Empire State i.e., Empire State and Agree Realty go up and down completely randomly.
Pair Corralation between Empire State and Agree Realty
Given the investment horizon of 90 days Empire State Realty is expected to under-perform the Agree Realty. In addition to that, Empire State is 3.36 times more volatile than Agree Realty. It trades about -0.07 of its total potential returns per unit of risk. Agree Realty is currently generating about 0.18 per unit of volatility. If you would invest 1,687 in Agree Realty on June 13, 2025 and sell it today you would earn a total of 129.00 from holding Agree Realty or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empire State Realty vs. Agree Realty
Performance |
| Timeline |
| Empire State Realty |
| Agree Realty |
Empire State and Agree Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Agree Realty
The main advantage of trading using opposite Empire State and Agree Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Agree 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 Agree Realty will offset losses from the drop in Agree Realty's long position.| Empire State vs. Broadstone Net Lease | Empire State vs. Essential Properties Realty | Empire State vs. One Liberty Properties | Empire State vs. American Assets Trust |
| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Vornado Realty Trust | Agree Realty vs. Rexford Industrial Realty | Agree Realty vs. Digital Realty Trust |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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