Correlation Between First Industrial and Dfa Real
Can any of the company-specific risk be diversified away by investing in both First Industrial and Dfa 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 First Industrial and Dfa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and Dfa Real Estate, you can compare the effects of market volatilities on First Industrial and Dfa 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 First Industrial with a short position of Dfa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Dfa Real.
Diversification Opportunities for First Industrial and Dfa Real
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Dfa is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty and Dfa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Real Estate and First Industrial 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 First Industrial Realty are associated (or correlated) with Dfa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Real Estate has no effect on the direction of First Industrial i.e., First Industrial and Dfa Real go up and down completely randomly.
Pair Corralation between First Industrial and Dfa Real
Allowing for the 90-day total investment horizon First Industrial Realty is expected to generate 1.64 times more return on investment than Dfa Real. However, First Industrial is 1.64 times more volatile than Dfa Real Estate. It trades about 0.08 of its potential returns per unit of risk. Dfa Real Estate is currently generating about 0.01 per unit of risk. If you would invest 4,859 in First Industrial Realty on June 5, 2025 and sell it today you would earn a total of 327.00 from holding First Industrial Realty or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
First Industrial Realty vs. Dfa Real Estate
Performance |
| Timeline |
| First Industrial Realty |
| Dfa Real Estate |
First Industrial and Dfa Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Dfa Real
The main advantage of trading using opposite First Industrial and Dfa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial position performs unexpectedly, Dfa 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 Dfa Real will offset losses from the drop in Dfa Real's long position.| First Industrial vs. LXP Industrial Trust | First Industrial vs. Plymouth Industrial REIT | First Industrial vs. EastGroup Properties | First Industrial vs. Americold Realty Trust |
| Dfa Real vs. Dfa International Small | Dfa Real vs. Us Large Cap | Dfa Real vs. International Small Pany | Dfa Real vs. Dfa International Value |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |