Correlation Between First Industrial and Modiv

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

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

Diversification Opportunities for First Industrial and Modiv

-0.08

Correlation Coefficient

First Industrial  Modiv

Good diversification

The 3 months correlation between First and Modiv is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty and Modiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modiv Inc and First Industrial 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 First Industrial Realty are associated (or correlated) with Modiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modiv Inc has no effect on the direction of First Industrial i.e., First Industrial and Modiv go up and down completely randomly.

Pair Corralation between First Industrial and Modiv

Allowing for the 90-day total investment horizon First Industrial is expected to generate 1.2 times less return on investment than Modiv. In addition to that, First Industrial is 2.27 times more volatile than Modiv Inc. It trades about 0.01 of its total potential returns per unit of risk. Modiv Inc is currently generating about 0.02 per unit of volatility. If you would invest  2,420  in Modiv Inc on May 6, 2025 and sell it today you would earn a total of  14.00  from holding Modiv Inc or generate 0.58% return on investment over 90 days.

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

First Industrial Realty  vs.  Modiv Inc

First Industrial Realty

Risk-Adjusted Performance

Very Weak

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

Modiv Inc

Risk-Adjusted Performance

Weak

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

Pair Trading with First Industrial and Modiv

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

The idea behind First Industrial Realty and Modiv Inc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.