Correlation Between CBL Associates and Inventrust Properties
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Inventrust 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 Inventrust 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 Inventrust Properties Corp, you can compare the effects of market volatilities on CBL Associates and Inventrust 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 Inventrust Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Inventrust Properties.
Diversification Opportunities for CBL Associates and Inventrust Properties
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CBL and Inventrust is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Inventrust Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventrust 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 Inventrust Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventrust Properties has no effect on the direction of CBL Associates i.e., CBL Associates and Inventrust Properties go up and down completely randomly.
Pair Corralation between CBL Associates and Inventrust Properties
Considering the 90-day investment horizon CBL Associates is expected to generate 1.35 times less return on investment than Inventrust Properties. In addition to that, CBL Associates is 1.24 times more volatile than Inventrust Properties Corp. It trades about 0.14 of its total potential returns per unit of risk. Inventrust Properties Corp is currently generating about 0.23 per unit of volatility. If you would invest 2,923 in Inventrust Properties Corp on August 23, 2024 and sell it today you would earn a total of 157.00 from holding Inventrust Properties Corp or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Inventrust Properties Corp
Performance |
| Timeline |
| CBL Associates Properties |
| Inventrust Properties |
CBL Associates and Inventrust Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Inventrust Properties
The main advantage of trading using opposite CBL Associates and Inventrust Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Inventrust 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 Inventrust Properties will offset losses from the drop in Inventrust 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 |
| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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