Correlation Between CBL Associates and New York
Can any of the company-specific risk be diversified away by investing in both CBL Associates and New York 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 New York 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 New York City, you can compare the effects of market volatilities on CBL Associates and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and New York.
Diversification Opportunities for CBL Associates and New York
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBL and New is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and New York City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York City 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York City has no effect on the direction of CBL Associates i.e., CBL Associates and New York go up and down completely randomly.
Pair Corralation between CBL Associates and New York
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.59 times more return on investment than New York. However, CBL Associates Properties is 1.69 times less risky than New York. It trades about 0.34 of its potential returns per unit of risk. New York City is currently generating about -0.04 per unit of risk. If you would invest 2,525 in CBL Associates Properties on August 28, 2024 and sell it today you would earn a total of 532.00 from holding CBL Associates Properties or generate 21.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. New York City
Performance |
| Timeline |
| CBL Associates Properties |
| New York City |
CBL Associates and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and New York
The main advantage of trading using opposite CBL Associates and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| CBL Associates vs. Investcorp Credit Management | CBL Associates vs. Medalist Diversified Reit | CBL Associates vs. Aquagold International | CBL Associates vs. Morningstar Unconstrained Allocation |
| New York vs. MDJM | New York vs. New Concept Energy | New York vs. Fangdd Network Group | New York vs. Avalon GloboCare 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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