Correlation Between Alexanders and AMREP

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

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

Diversification Opportunities for Alexanders and AMREP

0.25

Correlation Coefficient

Alexanders  AMREP

Modest diversification

The 3 months correlation between Alexanders and AMREP is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Alexanders and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and Alexanders 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 Alexanders are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Alexanders i.e., Alexanders and AMREP go up and down completely randomly.

Pair Corralation between Alexanders and AMREP

Considering the 90-day investment horizon Alexanders is expected to generate 0.82 times more return on investment than AMREP. However, Alexanders is 1.22 times less risky than AMREP. It trades about 0.02 of its potential returns per unit of risk. AMREP is currently generating about -0.02 per unit of risk. If you would invest  21,648  in Alexanders on May 18, 2025 and sell it today you would earn a total of  222.00  from holding Alexanders or generate 1.03% return on investment over 90 days.

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

Alexanders  vs.  AMREP

Alexanders

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alexanders are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Alexanders is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

AMREP

Risk-Adjusted Performance

Weakest

Over the last 90 days AMREP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, AMREP is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Alexanders and AMREP

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

The idea behind Alexanders and AMREP 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.