Correlation Between CBL Associates and Four Corners
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Four Corners 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 Four Corners 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 Four Corners Property, you can compare the effects of market volatilities on CBL Associates and Four Corners 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 Four Corners. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Four Corners.
Diversification Opportunities for CBL Associates and Four Corners
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CBL and Four is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Four Corners Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Corners Property 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 Four Corners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Corners Property has no effect on the direction of CBL Associates i.e., CBL Associates and Four Corners go up and down completely randomly.
Pair Corralation between CBL Associates and Four Corners
Considering the 90-day investment horizon CBL Associates Properties is expected to under-perform the Four Corners. But the stock apears to be less risky and, when comparing its historical volatility, CBL Associates Properties is 1.03 times less risky than Four Corners. The stock trades about -0.32 of its potential returns per unit of risk. The Four Corners Property is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,742 in Four Corners Property on October 26, 2024 and sell it today you would earn a total of 6.00 from holding Four Corners Property or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Four Corners Property
Performance |
| Timeline |
| CBL Associates Properties |
| Four Corners Property |
CBL Associates and Four Corners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Four Corners
The main advantage of trading using opposite CBL Associates and Four Corners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Four Corners 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 Four Corners will offset losses from the drop in Four Corners' 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 |
| Four Corners vs. Alpineome Property Trust | Four Corners vs. Rithm Property Trust | Four Corners vs. Kite Realty Group | Four Corners vs. Inventrust Properties Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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