Correlation Between Sun Communities and Invitation Homes
Can any of the company-specific risk be diversified away by investing in both Sun Communities and Invitation Homes 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 Sun Communities and Invitation Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Communities and Invitation Homes, you can compare the effects of market volatilities on Sun Communities and Invitation Homes 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 Sun Communities with a short position of Invitation Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Communities and Invitation Homes.
Diversification Opportunities for Sun Communities and Invitation Homes
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and Invitation is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sun Communities and Invitation Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invitation Homes and Sun Communities 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 Sun Communities are associated (or correlated) with Invitation Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invitation Homes has no effect on the direction of Sun Communities i.e., Sun Communities and Invitation Homes go up and down completely randomly.
Pair Corralation between Sun Communities and Invitation Homes
Considering the 90-day investment horizon Sun Communities is expected to generate 1.22 times more return on investment than Invitation Homes. However, Sun Communities is 1.22 times more volatile than Invitation Homes. It trades about 0.05 of its potential returns per unit of risk. Invitation Homes is currently generating about -0.09 per unit of risk. If you would invest 12,280 in Sun Communities on June 1, 2025 and sell it today you would earn a total of 407.00 from holding Sun Communities or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Communities vs. Invitation Homes
Performance |
| Timeline |
| Sun Communities |
| Invitation Homes |
Sun Communities and Invitation Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Communities and Invitation Homes
The main advantage of trading using opposite Sun Communities and Invitation Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Communities position performs unexpectedly, Invitation Homes 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 Invitation Homes will offset losses from the drop in Invitation Homes' long position.| Sun Communities vs. Clipper Realty | Sun Communities vs. UDR Inc | Sun Communities vs. UMH Properties | Sun Communities vs. American Homes 4 |
| Invitation Homes vs. American Homes 4 | Invitation Homes vs. Mid America Apartment Communities | Invitation Homes vs. Camden Property Trust | Invitation Homes vs. Sun Communities |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |