AvalonBay Communities Correlations

AVB Stock

USD 199.74 0.00 0.00%

The current 90-days correlation between AvalonBay Communities and Essex Property Trust is 0.91 (i.e., Almost no diversification). The correlation of AvalonBay Communities is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

AvalonBay Communities Correlation With Market

Very good diversification

The correlation between AvalonBay Communities and DJI is -0.3 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding AvalonBay Communities and DJI in the same portfolio, assuming nothing else is changed.

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Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AvalonBay Communities. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real.

For information on how to trade AvalonBay Stock refer to our How to Trade AvalonBay Stock guide.

Moving together with AvalonBay Stock

0.61	BXP	Boston Properties	Pair Corr
0.63	CUZ	Cousins Properties	Pair Corr
0.73	EGP	EastGroup Properties Earnings Call This Week	Pair Corr
0.67	INVH	Invitation Homes Earnings Call This Week	Pair Corr
0.7	O	Realty Income	Pair Corr
0.67	FR	First Industrial Realty Earnings Call Today	Pair Corr
0.75	UE	Urban Edge Properties	Pair Corr

Related Correlations Analysis

	ESS	UDR	MAA	CPT	EQR	NXRT
ESS		0.7	-0.07	0.81	0.7	0.17	ESS
UDR	0.7		0.54	0.8	0.9	0.75	UDR
MAA	-0.07	0.54		0.23	0.46	0.86	MAA
CPT	0.81	0.8	0.23		0.89	0.33	CPT
EQR	0.7	0.9	0.46	0.89		0.57	EQR
NXRT	0.17	0.75	0.86	0.33	0.57		NXRT
	ESS	UDR	MAA	CPT	EQR	NXRT

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

EQR	+ 0.9	UDR
EQR	+ 0.89	CPT
NXRT	+ 0.86	MAA
CPT	+ 0.81	ESS
CPT	+ 0.8	UDR
NXRT	+ 0.75	UDR

High negative correlations

MAA

- 0.07

ESS

Risk-Adjusted Indicators

There is a big difference between AvalonBay Stock performing well and AvalonBay Communities Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze AvalonBay Communities' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ESS	1.14	0.26	(0.07)	(0.33)	1.36	(1.18)	2.44	(1.92)	10.15
UDR	1.11	0.19	(0.12)	(0.20)	1.30	(1.21)	1.96	(2.16)	11.05
MAA	1.00	(0.13)	(0.18)	0.04	1.19	(1.07)	2.26	(1.92)	7.94
CPT	0.97	0.17	(0.13)	(0.30)	1.09	(1.13)	2.12	(2.00)	8.13
EQR	1.06	0.21	(0.10)	(0.33)	1.23	(1.12)	2.60	(1.85)	12.02
NXRT	1.21	0.16	(0.11)	(0.19)	1.56	(1.26)	2.48	(2.45)	11.77

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