Correlation Between CBL Associates and Generationome Properties
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Generationome Properties 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 Generationome Properties 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 Generationome Properties, you can compare the effects of market volatilities on CBL Associates and Generationome Properties 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 Generationome Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Generationome Properties.
Diversification Opportunities for CBL Associates and Generationome Properties
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CBL and Generationome is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Generationome Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generationome Properties 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 Generationome Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generationome Properties has no effect on the direction of CBL Associates i.e., CBL Associates and Generationome Properties go up and down completely randomly.
Pair Corralation between CBL Associates and Generationome Properties
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.51 times more return on investment than Generationome Properties. However, CBL Associates Properties is 1.94 times less risky than Generationome Properties. It trades about 0.24 of its potential returns per unit of risk. Generationome Properties is currently generating about -0.16 per unit of risk. If you would invest 2,564 in CBL Associates Properties on August 30, 2024 and sell it today you would earn a total of 561.00 from holding CBL Associates Properties or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Generationome Properties
Performance |
| Timeline |
| CBL Associates Properties |
| Generationome Properties |
CBL Associates and Generationome Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Generationome Properties
The main advantage of trading using opposite CBL Associates and Generationome Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Generationome Properties 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 Generationome Properties will offset losses from the drop in Generationome Properties' 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 |
| Generationome Properties vs. One Liberty Properties | Generationome Properties vs. Modiv Inc | Generationome Properties vs. Armada Hflr Pr | Generationome Properties vs. Presidio Property Trust |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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