Correlation Between Aerofoam Metals and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Aerofoam Metals and Cedar 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 Aerofoam Metals and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerofoam Metals and Cedar Realty Trust, you can compare the effects of market volatilities on Aerofoam Metals and Cedar 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 Aerofoam Metals with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerofoam Metals and Cedar Realty.
Diversification Opportunities for Aerofoam Metals and Cedar Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aerofoam and Cedar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aerofoam Metals and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust and Aerofoam Metals 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 Aerofoam Metals are associated (or correlated) with Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Aerofoam Metals i.e., Aerofoam Metals and Cedar Realty go up and down completely randomly.
Pair Corralation between Aerofoam Metals and Cedar Realty
If you would invest 1,512 in Cedar Realty Trust on August 28, 2024 and sell it today you would earn a total of 108.00 from holding Cedar Realty Trust or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aerofoam Metals vs. Cedar Realty Trust
Performance |
| Timeline |
| Aerofoam Metals |
| Cedar Realty Trust |
Aerofoam Metals and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerofoam Metals and Cedar Realty
The main advantage of trading using opposite Aerofoam Metals and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerofoam Metals position performs unexpectedly, Cedar 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Aerofoam Metals vs. FitLife Brands, Common | Aerofoam Metals vs. HUMANA INC | Aerofoam Metals vs. SCOR PK | Aerofoam Metals vs. Aquagold International |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
Check out your portfolio center.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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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