Correlation Between Primaris Real and Netstreit Corp

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

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

Diversification Opportunities for Primaris Real and Netstreit Corp

-0.28

Correlation Coefficient

Primaris Real  Netstreit Corp

Very good diversification

The 3 months correlation between Primaris and Netstreit is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Primaris Real Estate and Netstreit Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netstreit Corp and Primaris Real 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 Primaris Real Estate are associated (or correlated) with Netstreit Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netstreit Corp has no effect on the direction of Primaris Real i.e., Primaris Real and Netstreit Corp go up and down completely randomly.

Pair Corralation between Primaris Real and Netstreit Corp

Assuming the 90 days horizon Primaris Real Estate is expected to generate 1.09 times more return on investment than Netstreit Corp. However, Primaris Real is 1.09 times more volatile than Netstreit Corp. It trades about 0.07 of its potential returns per unit of risk. Netstreit Corp is currently generating about 0.06 per unit of risk. If you would invest  1,061  in Primaris Real Estate on July 31, 2025 and sell it today you would earn a total of  59.00  from holding Primaris Real Estate or generate 5.56% return on investment over 90 days.

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

Primaris Real Estate  vs.  Netstreit Corp

Primaris Real Estate

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Primaris Real Estate are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Primaris Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Netstreit Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Netstreit Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Netstreit Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Primaris Real and Netstreit Corp

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

The idea behind Primaris Real Estate and Netstreit Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.