CEDAR Correlations

150190AE6   97.12  0.11  0.11%   
The current 90-days correlation between CEDAR FAIR L and PennyMac Mortgage Investment is 0.02 (i.e., Significant diversification). The correlation of CEDAR is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

CEDAR Correlation With Market

CEDARDowDiversified AwayCEDARDowDiversified Away100%

Weak diversification

The correlation between CEDAR FAIR L and DJI is 0.36 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CEDAR FAIR L and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to CEDAR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CEDAR when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CEDAR - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CEDAR FAIR L to buy it.

Moving together with CEDAR Bond

  0.65HWDCX Hartford WorldPairCorr

Moving against CEDAR Bond

  0.59BCLI Brainstorm Cell TherPairCorr
  0.51SHRMX Stone Ridge HighPairCorr
  0.32HSGFX Hussman Strategic GrowthPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
GAINNICAGY
GAINNLTM
ICAGYLTM
ORILTM
LTMPMT-P-B
ORIGAINN
  
High negative correlations   
ICAGYPMT-P-B

Risk-Adjusted Indicators

There is a big difference between CEDAR Bond performing well and CEDAR Corporate Bond doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze CEDAR's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in CEDAR without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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