Correlation Between LXP Industrial and Alexanders

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

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

Diversification Opportunities for LXP Industrial and Alexanders

0.79

Correlation Coefficient

LXP Industrial  Alexanders

Poor diversification

The 3 months correlation between LXP and Alexanders is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding LXP Industrial Trust and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders and LXP 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 LXP Industrial Trust 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 LXP Industrial i.e., LXP Industrial and Alexanders go up and down completely randomly.

Pair Corralation between LXP Industrial and Alexanders

Considering the 90-day investment horizon LXP Industrial is expected to generate 3.25 times less return on investment than Alexanders. But when comparing it to its historical volatility, LXP Industrial Trust is 1.17 times less risky than Alexanders. It trades about 0.11 of its potential returns per unit of risk. Alexanders is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  19,753  in Alexanders on April 24, 2025 and sell it today you would earn a total of  5,840  from holding Alexanders or generate 29.57% return on investment over 90 days.

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

LXP Industrial Trust  vs.  Alexanders

LXP Industrial Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LXP Industrial Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, LXP Industrial 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 24 (%) 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 LXP Industrial and Alexanders

The main advantage of trading using opposite LXP Industrial and Alexanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LXP Industrial 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 LXP Industrial Trust 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.

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 the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.