Correlation Between CBL Associates and Forestar
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Forestar 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 Forestar 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 Forestar Group, you can compare the effects of market volatilities on CBL Associates and Forestar 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 Forestar. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Forestar.
Diversification Opportunities for CBL Associates and Forestar
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBL and Forestar is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Forestar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forestar Group 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 Forestar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forestar Group has no effect on the direction of CBL Associates i.e., CBL Associates and Forestar go up and down completely randomly.
Pair Corralation between CBL Associates and Forestar
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.5 times more return on investment than Forestar. However, CBL Associates Properties is 2.01 times less risky than Forestar. It trades about 0.54 of its potential returns per unit of risk. Forestar Group is currently generating about -0.22 per unit of risk. If you would invest 2,814 in CBL Associates Properties on November 18, 2024 and sell it today you would earn a total of 488.00 from holding CBL Associates Properties or generate 17.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Forestar Group
Performance |
| Timeline |
| CBL Associates Properties |
| Forestar Group |
CBL Associates and Forestar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Forestar
The main advantage of trading using opposite CBL Associates and Forestar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Forestar 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 Forestar will offset losses from the drop in Forestar'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 |
| Forestar vs. American Realty Investors | Forestar vs. Landsea Homes Corp | Forestar vs. Five Point Holdings | Forestar vs. AMREP |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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