Correlation Between CBL Associates and National Retail
Can any of the company-specific risk be diversified away by investing in both CBL Associates and National Retail 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 National Retail 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 National Retail Properties, you can compare the effects of market volatilities on CBL Associates and National Retail 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 National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and National Retail.
Diversification Opportunities for CBL Associates and National Retail
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CBL and National is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop 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 National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of CBL Associates i.e., CBL Associates and National Retail go up and down completely randomly.
Pair Corralation between CBL Associates and National Retail
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 1.14 times more return on investment than National Retail. However, CBL Associates is 1.14 times more volatile than National Retail Properties. It trades about 0.13 of its potential returns per unit of risk. National Retail Properties is currently generating about 0.05 per unit of risk. If you would invest 2,078 in CBL Associates Properties on September 14, 2024 and sell it today you would earn a total of 1,066 from holding CBL Associates Properties or generate 51.3% 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. National Retail Properties
Performance |
| Timeline |
| CBL Associates Properties |
| National Retail Prop |
CBL Associates and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and National Retail
The main advantage of trading using opposite CBL Associates and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail'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 |
| National Retail vs. Site Centers Corp | National Retail vs. CBL Associates Properties | National Retail vs. Urban Edge Properties | National Retail 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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