Correlation Between Aldel Financial and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Aldel Financial 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 Aldel Financial and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Cedar Realty Trust, you can compare the effects of market volatilities on Aldel Financial 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 Aldel Financial with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Cedar Realty.
Diversification Opportunities for Aldel Financial and Cedar Realty
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aldel and Cedar is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II 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 Aldel Financial 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 Aldel Financial II 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 Aldel Financial i.e., Aldel Financial and Cedar Realty go up and down completely randomly.
Pair Corralation between Aldel Financial and Cedar Realty
Assuming the 90 days horizon Aldel Financial is expected to generate 9.57 times less return on investment than Cedar Realty. But when comparing it to its historical volatility, Aldel Financial II is 26.19 times less risky than Cedar Realty. It trades about 0.11 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,091 in Cedar Realty Trust on August 27, 2024 and sell it today you would earn a total of 490.00 from holding Cedar Realty Trust or generate 44.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.04% |
| Values | Daily Returns |
Aldel Financial II vs. Cedar Realty Trust
Performance |
| Timeline |
| Aldel Financial II |
| Cedar Realty Trust |
Aldel Financial and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Cedar Realty
The main advantage of trading using opposite Aldel Financial and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial 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.| Aldel Financial vs. Organic Sales and | Aldel Financial vs. Sealed Air | Aldel Financial vs. Inuvo Inc | Aldel Financial vs. Fluent Inc |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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