Correlation Between Alexandria Real and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Alexandria Real and Urban Edge 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 Alexandria Real and Urban Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexandria Real Estate and Urban Edge Properties, you can compare the effects of market volatilities on Alexandria Real and Urban Edge 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 Alexandria Real with a short position of Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexandria Real and Urban Edge.
Diversification Opportunities for Alexandria Real and Urban Edge
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alexandria and Urban is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Alexandria Real Estate and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties and Alexandria Real 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 Alexandria Real Estate are associated (or correlated) with Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Alexandria Real i.e., Alexandria Real and Urban Edge go up and down completely randomly.
Pair Corralation between Alexandria Real and Urban Edge
Considering the 90-day investment horizon Alexandria Real is expected to generate 26.73 times less return on investment than Urban Edge. In addition to that, Alexandria Real is 1.39 times more volatile than Urban Edge Properties. It trades about 0.0 of its total potential returns per unit of risk. Urban Edge Properties is currently generating about 0.1 per unit of volatility. If you would invest 1,468 in Urban Edge Properties on September 12, 2024 and sell it today you would earn a total of 781.50 from holding Urban Edge Properties or generate 53.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alexandria Real Estate vs. Urban Edge Properties
Performance |
| Timeline |
| Alexandria Real Estate |
| Urban Edge Properties |
Alexandria Real and Urban Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexandria Real and Urban Edge
The main advantage of trading using opposite Alexandria Real and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexandria Real position performs unexpectedly, Urban Edge 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 Urban Edge will offset losses from the drop in Urban Edge's long position.| Alexandria Real vs. Vornado Realty Trust | Alexandria Real vs. SL Green Realty | Alexandria Real vs. Kilroy Realty Corp | Alexandria Real vs. Highwoods Properties |
| Urban Edge vs. Saul Centers | Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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