Correlation Between CBL Associates and Gaucho Group
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Gaucho Group 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 Gaucho Group 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 Gaucho Group Holdings, you can compare the effects of market volatilities on CBL Associates and Gaucho Group 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 Gaucho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Gaucho Group.
Diversification Opportunities for CBL Associates and Gaucho Group
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CBL and Gaucho is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Gaucho Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaucho Group 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 Gaucho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaucho Group Holdings has no effect on the direction of CBL Associates i.e., CBL Associates and Gaucho Group go up and down completely randomly.
Pair Corralation between CBL Associates and Gaucho Group
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.08 times more return on investment than Gaucho Group. However, CBL Associates Properties is 12.08 times less risky than Gaucho Group. It trades about 0.25 of its potential returns per unit of risk. Gaucho Group Holdings is currently generating about -0.22 per unit of risk. If you would invest 2,740 in CBL Associates Properties on August 24, 2024 and sell it today you would earn a total of 210.00 from holding CBL Associates Properties or generate 7.66% 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. Gaucho Group Holdings
Performance |
| Timeline |
| CBL Associates Properties |
| Gaucho Group Holdings |
CBL Associates and Gaucho Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Gaucho Group
The main advantage of trading using opposite CBL Associates and Gaucho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Gaucho Group 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 Gaucho Group will offset losses from the drop in Gaucho Group's long position.| CBL Associates vs. Federal Realty Investment | CBL Associates vs. Agree Realty | CBL Associates vs. Tanger Factory Outlet | CBL Associates vs. Netstreit 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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