Correlation Between ACRES Commercial and Alexanders

Can any of the company-specific risk be diversified away by investing in both ACRES Commercial and Alexanders 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 ACRES Commercial and Alexanders into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ACRES Commercial Realty and Alexanders, you can compare the effects of market volatilities on ACRES Commercial and Alexanders 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 ACRES Commercial with a short position of Alexanders. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACRES Commercial and Alexanders.

Diversification Opportunities for ACRES Commercial and Alexanders

0.76

Correlation Coefficient

ACRES Commercial  Alexanders

Poor diversification

The 3 months correlation between ACRES and Alexanders is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ACRES Commercial Realty and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders and ACRES Commercial 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 ACRES Commercial Realty are associated (or correlated) with Alexanders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexanders has no effect on the direction of ACRES Commercial i.e., ACRES Commercial and Alexanders go up and down completely randomly.

Pair Corralation between ACRES Commercial and Alexanders

Assuming the 90 days trading horizon ACRES Commercial is expected to generate 2.44 times less return on investment than Alexanders. But when comparing it to its historical volatility, ACRES Commercial Realty is 1.63 times less risky than Alexanders. It trades about 0.15 of its potential returns per unit of risk. Alexanders is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  21,028  in Alexanders on May 2, 2025 and sell it today you would earn a total of  4,208  from holding Alexanders or generate 20.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ACRES Commercial Realty  vs.  Alexanders

ACRES Commercial Realty

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ACRES Commercial Realty are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ACRES Commercial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Alexanders

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alexanders are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Alexanders showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ACRES Commercial and Alexanders

The main advantage of trading using opposite ACRES Commercial and Alexanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACRES Commercial position performs unexpectedly, Alexanders 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 Alexanders will offset losses from the drop in Alexanders' long position.

The idea behind ACRES Commercial Realty and Alexanders 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.