Correlation Between CBL Associates and Star Holdings
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Star Holdings 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 Star Holdings 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 Star Holdings, you can compare the effects of market volatilities on CBL Associates and Star Holdings 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 Star Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Star Holdings.
Diversification Opportunities for CBL Associates and Star Holdings
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBL and Star is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Star Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Holdings 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 Star Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Holdings has no effect on the direction of CBL Associates i.e., CBL Associates and Star Holdings go up and down completely randomly.
Pair Corralation between CBL Associates and Star Holdings
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.49 times more return on investment than Star Holdings. However, CBL Associates Properties is 2.06 times less risky than Star Holdings. It trades about 0.54 of its potential returns per unit of risk. Star Holdings is currently generating about -0.03 per unit of risk. If you would invest 2,814 in CBL Associates Properties on November 18, 2024 and sell it today you would earn a total of 488.00 from holding CBL Associates Properties or generate 17.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Star Holdings
Performance |
| Timeline |
| CBL Associates Properties |
| Star Holdings |
CBL Associates and Star Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Star Holdings
The main advantage of trading using opposite CBL Associates and Star Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Star Holdings 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 Star Holdings will offset losses from the drop in Star Holdings' 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 |
| Star Holdings vs. Hochschild Mining PLC | Star Holdings vs. Galaxy Gaming | Star Holdings vs. Qorvo Inc | Star Holdings vs. Micron Technology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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