Correlation Between Vroom and Acadia Realty

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vroom and Acadia 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 Vroom and Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vroom Inc and Acadia Realty Trust, you can compare the effects of market volatilities on Vroom and Acadia 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 Vroom with a short position of Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vroom and Acadia Realty.

Diversification Opportunities for Vroom and Acadia Realty

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Vroom and Acadia is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vroom Inc and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust and Vroom 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 Vroom Inc are associated (or correlated) with Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Vroom i.e., Vroom and Acadia Realty go up and down completely randomly.

Pair Corralation between Vroom and Acadia Realty

Considering the 90-day investment horizon Vroom Inc is expected to under-perform the Acadia Realty. In addition to that, Vroom is 3.04 times more volatile than Acadia Realty Trust. It trades about -0.08 of its total potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.02 per unit of volatility. If you would invest  1,402  in Acadia Realty Trust on September 7, 2022 and sell it today you would earn a total of  79.00  from holding Acadia Realty Trust or generate 5.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Vroom Inc  vs.  Acadia Realty Trust

 Performance (%) 
       Timeline  
Vroom Inc 
Vroom Performance
0 of 100
Over the last 90 days Vroom Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in January 2023. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Vroom Price Channel

Acadia Realty Trust 
Acadia Performance
0 of 100
Over the last 90 days Acadia Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Acadia Realty is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Acadia Price Channel

Vroom and Acadia Realty Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vroom and Acadia Realty

The main advantage of trading using opposite Vroom and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vroom position performs unexpectedly, Acadia 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.
Vroom vs. News Corporation
Vroom vs. Liberty Media Formula
Vroom vs. Liberty Media Corp
Vroom vs. World Wrestling Entertainment
The idea behind Vroom Inc and Acadia Realty Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Acadia Realty vs. Bank Of America
Acadia Realty vs. Dupont De Nemours
Acadia Realty vs. ATT Inc
Acadia Realty vs. Walt Disney
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go