Correlation Between BCE and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both BCE 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 BCE and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and Cedar Realty Trust, you can compare the effects of market volatilities on BCE 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 BCE with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Cedar Realty.
Diversification Opportunities for BCE and Cedar Realty
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BCE and Cedar is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc 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 BCE 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 BCE Inc 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 BCE i.e., BCE and Cedar Realty go up and down completely randomly.
Pair Corralation between BCE and Cedar Realty
Considering the 90-day investment horizon BCE Inc is expected to under-perform the Cedar Realty. But the stock apears to be less risky and, when comparing its historical volatility, BCE Inc is 1.95 times less risky than Cedar Realty. The stock trades about -0.12 of its potential returns per unit of risk. The Cedar Realty Trust is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,354 in Cedar Realty Trust on September 3, 2024 and sell it today you would earn a total of 284.00 from holding Cedar Realty Trust or generate 20.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCE Inc vs. Cedar Realty Trust
Performance |
| Timeline |
| BCE Inc |
| Cedar Realty Trust |
BCE and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and Cedar Realty
The main advantage of trading using opposite BCE and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE 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.The idea behind BCE Inc and Cedar Realty Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets |