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Portfolio diversification through timber real estate investment trusts: A cointegration analysis

Publication ,  Journal Article
La, L; Mei, B
Published in: Forest Policy and Economics
January 1, 2015

Investors who are interested in long-term investments have regarded timberland as an advantageous asset class. The formation of timber real estate investment trusts (REITs) has offered both individual and institutional investors more options to diversify their portfolios through securitized timberlands. Nevertheless, different mixes of REIT stocks will yield various degrees of volatility for the portfolio's performances. The cointegration analyses in this study show that there are no general trends among the historical timber REIT stock prices and the S&P 500 index. Therefore, there is diversification potential in the long run with each timber REIT (except Plum Creek) considered as a unique candidate.

Duke Scholars

Published In

Forest Policy and Economics

DOI

ISSN

1389-9341

Publication Date

January 1, 2015

Volume

50

Start / End Page

269 / 274

Related Subject Headings

  • Forestry
  • 4104 Environmental management
  • 3801 Applied economics
  • 3007 Forestry sciences
  • 1605 Policy and Administration
  • 1402 Applied Economics
  • 0705 Forestry Sciences
 

Citation

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La, L., & Mei, B. (2015). Portfolio diversification through timber real estate investment trusts: A cointegration analysis. Forest Policy and Economics, 50, 269–274. https://doi.org/10.1016/j.forpol.2014.07.003
La, L., and B. Mei. “Portfolio diversification through timber real estate investment trusts: A cointegration analysis.” Forest Policy and Economics 50 (January 1, 2015): 269–74. https://doi.org/10.1016/j.forpol.2014.07.003.
La L, Mei B. Portfolio diversification through timber real estate investment trusts: A cointegration analysis. Forest Policy and Economics. 2015 Jan 1;50:269–74.
La, L., and B. Mei. “Portfolio diversification through timber real estate investment trusts: A cointegration analysis.” Forest Policy and Economics, vol. 50, Jan. 2015, pp. 269–74. Scopus, doi:10.1016/j.forpol.2014.07.003.
La L, Mei B. Portfolio diversification through timber real estate investment trusts: A cointegration analysis. Forest Policy and Economics. 2015 Jan 1;50:269–274.
Journal cover image

Published In

Forest Policy and Economics

DOI

ISSN

1389-9341

Publication Date

January 1, 2015

Volume

50

Start / End Page

269 / 274

Related Subject Headings

  • Forestry
  • 4104 Environmental management
  • 3801 Applied economics
  • 3007 Forestry sciences
  • 1605 Policy and Administration
  • 1402 Applied Economics
  • 0705 Forestry Sciences