Correlation Between Cedar Realty and AERWINS Technologies
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and AERWINS Technologies 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 Cedar Realty and AERWINS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cedar Realty Trust and AERWINS Technologies, you can compare the effects of market volatilities on Cedar Realty and AERWINS Technologies 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 Cedar Realty with a short position of AERWINS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and AERWINS Technologies.
Diversification Opportunities for Cedar Realty and AERWINS Technologies
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cedar and AERWINS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Cedar Realty 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 Cedar Realty Trust are associated (or correlated) with AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Cedar Realty i.e., Cedar Realty and AERWINS Technologies go up and down completely randomly.
Pair Corralation between Cedar Realty and AERWINS Technologies
If you would invest 1,603 in Cedar Realty Trust on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Cedar Realty Trust or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cedar Realty Trust vs. AERWINS Technologies
Performance |
| Timeline |
| Cedar Realty Trust |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cedar Realty and AERWINS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and AERWINS Technologies
The main advantage of trading using opposite Cedar Realty and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, AERWINS Technologies 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 AERWINS Technologies will offset losses from the drop in AERWINS Technologies' long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| AERWINS Technologies vs. Cedar Realty Trust | AERWINS Technologies vs. Sphere Entertainment Co | AERWINS Technologies vs. Hannon Armstrong Sustainable | AERWINS Technologies vs. Nomura Holdings ADR |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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