Correlation Between CBL Associates and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both CBL Associates 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 CBL Associates and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Cedar Realty Trust, you can compare the effects of market volatilities on CBL Associates 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 CBL Associates with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Cedar Realty.
Diversification Opportunities for CBL Associates and Cedar Realty
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBL and Cedar is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties 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 CBL Associates 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 CBL Associates Properties 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 CBL Associates i.e., CBL Associates and Cedar Realty go up and down completely randomly.
Pair Corralation between CBL Associates and Cedar Realty
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 1.13 times more return on investment than Cedar Realty. However, CBL Associates is 1.13 times more volatile than Cedar Realty Trust. It trades about 0.24 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.11 per unit of risk. If you would invest 2,545 in CBL Associates Properties on September 2, 2024 and sell it today you would earn a total of 545.00 from holding CBL Associates Properties or generate 21.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Cedar Realty Trust
Performance |
| Timeline |
| CBL Associates Properties |
| Cedar Realty Trust |
CBL Associates and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Cedar Realty
The main advantage of trading using opposite CBL Associates and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates 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.| CBL Associates vs. Kite Realty Group | CBL Associates vs. Site Centers Corp | CBL Associates vs. Urban Edge Properties | CBL Associates vs. Acadia Realty Trust |
| Cedar Realty vs. Site Centers Corp | Cedar Realty vs. Urban Edge Properties | Cedar Realty vs. Retail Opportunity Investments | Cedar Realty vs. Brixmor Property |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |