Correlation Between Expand Energy and Alexandria Real
Can any of the company-specific risk be diversified away by investing in both Expand Energy and Alexandria 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 Expand Energy and Alexandria Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Alexandria Real Estate, you can compare the effects of market volatilities on Expand Energy and Alexandria 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 Expand Energy with a short position of Alexandria Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Alexandria Real.
Diversification Opportunities for Expand Energy and Alexandria Real
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Expand and Alexandria is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Alexandria Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria Real Estate and Expand Energy 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 Expand Energy are associated (or correlated) with Alexandria Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria Real Estate has no effect on the direction of Expand Energy i.e., Expand Energy and Alexandria Real go up and down completely randomly.
Pair Corralation between Expand Energy and Alexandria Real
Considering the 90-day investment horizon Expand Energy is expected to under-perform the Alexandria Real. In addition to that, Expand Energy is 1.04 times more volatile than Alexandria Real Estate. It trades about -0.15 of its total potential returns per unit of risk. Alexandria Real Estate is currently generating about 0.17 per unit of volatility. If you would invest 6,835 in Alexandria Real Estate on June 1, 2025 and sell it today you would earn a total of 1,409 from holding Alexandria Real Estate or generate 20.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expand Energy vs. Alexandria Real Estate
Performance |
| Timeline |
| Expand Energy |
| Alexandria Real Estate |
Expand Energy and Alexandria Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Alexandria Real
The main advantage of trading using opposite Expand Energy and Alexandria Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Alexandria 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 Alexandria Real will offset losses from the drop in Alexandria Real's long position.| Expand Energy vs. Alexandria Real Estate | Expand Energy vs. Bassett Furniture Industries | Expand Energy vs. Century Casinos | Expand Energy vs. Melco Resorts Entertainment |
| Alexandria Real vs. Vornado Realty Trust | Alexandria Real vs. Highwoods Properties | Alexandria Real vs. Piedmont Office 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |