IDEAS home Printed from https://ideas.repec.org/a/taf/repmxx/v14y2008i1p7-20.html
   My bibliography  Save this article

Home Builder Stocks in Mixed-Asset Portfolios

Author

Listed:
  • Ping Cheng
  • Marcus Allen

Abstract

Executive Summary. The purpose of this study is to examine the long-run performance of homebuilder stocks and the potential role of the sector in institutional mixed-asset portfolios. Considering a 30-year history of returns of common stocks, corporate bonds, REITs, T-bills, and homebuilder stocks, homebuilder stocks dramatically outperform all other asset classes, although superior performance is not significant on a risk-adjusted basis. However, the relatively low correlations between home-builder stocks and stocks and bonds make it beneficial to include homebuilder stocks in a mixed-asset portfolio. The study employs a bootstrap procedure to investigate the diversification benefits under the condition of certainty as well as uncertainty. The findings reveal that including homebuilder stocks can improve the mean-variance efficiency of portfolios that contain only traditional financial assets such as common stocks, bonds, and T-bills.

Suggested Citation

  • Ping Cheng & Marcus Allen, 2008. "Home Builder Stocks in Mixed-Asset Portfolios," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 14(1), pages 7-20, January.
    • Handle: RePEc:taf:repmxx:v:14:y:2008:i:1:p:7-20
    DOI: 10.1080/10835547.2008.12089798
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2008.12089798
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2008.12089798?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:repmxx:v:14:y:2008:i:1:p:7-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/repm20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.