Correlation Between CBL Associates and Realty Income
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Realty Income 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 Realty Income 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 Realty Income, you can compare the effects of market volatilities on CBL Associates and Realty Income 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 Realty Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Realty Income.
Diversification Opportunities for CBL Associates and Realty Income
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CBL and Realty is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Realty Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realty Income 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 Realty Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realty Income has no effect on the direction of CBL Associates i.e., CBL Associates and Realty Income go up and down completely randomly.
Pair Corralation between CBL Associates and Realty Income
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 1.27 times more return on investment than Realty Income. However, CBL Associates is 1.27 times more volatile than Realty Income. It trades about 0.1 of its potential returns per unit of risk. Realty Income is currently generating about -0.15 per unit of risk. If you would invest 2,601 in CBL Associates Properties on October 25, 2024 and sell it today you would earn a total of 224.00 from holding CBL Associates Properties or generate 8.61% 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. Realty Income
Performance |
| Timeline |
| CBL Associates Properties |
| Realty Income |
CBL Associates and Realty Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Realty Income
The main advantage of trading using opposite CBL Associates and Realty Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Realty Income 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 Realty Income will offset losses from the drop in Realty Income'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 |
| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |