Correlation Between Netstreit Corp and Agree Realty

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

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

Diversification Opportunities for Netstreit Corp and Agree Realty

0.35

Correlation Coefficient

Netstreit Corp  Agree Realty

Weak diversification

The 3 months correlation between Netstreit and Agree is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Netstreit Corp and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty and Netstreit Corp 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 Netstreit Corp are associated (or correlated) with Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of Netstreit Corp i.e., Netstreit Corp and Agree Realty go up and down completely randomly.

Pair Corralation between Netstreit Corp and Agree Realty

Given the investment horizon of 90 days Netstreit Corp is expected to generate 1.01 times more return on investment than Agree Realty. However, Netstreit Corp is 1.01 times more volatile than Agree Realty. It trades about 0.13 of its potential returns per unit of risk. Agree Realty is currently generating about 0.05 per unit of risk. If you would invest  1,740  in Netstreit Corp on July 17, 2025 and sell it today you would earn a total of  158.00  from holding Netstreit Corp or generate 9.08% return on investment over 90 days.

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

Netstreit Corp  vs.  Agree Realty

Netstreit Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Netstreit Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Netstreit Corp may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Agree Realty

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Agree Realty are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Agree Realty is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Netstreit Corp and Agree Realty

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

The idea behind Netstreit Corp and Agree Realty 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.