Correlation Between Cedar Realty and Brunswick
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Brunswick 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 Brunswick 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 Brunswick, you can compare the effects of market volatilities on Cedar Realty and Brunswick 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 Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Brunswick.
Diversification Opportunities for Cedar Realty and Brunswick
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cedar and Brunswick is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick 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 Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of Cedar Realty i.e., Cedar Realty and Brunswick go up and down completely randomly.
Pair Corralation between Cedar Realty and Brunswick
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.25 times more return on investment than Brunswick. However, Cedar Realty is 1.25 times more volatile than Brunswick. It trades about 0.06 of its potential returns per unit of risk. Brunswick is currently generating about 0.0 per unit of risk. If you would invest 1,177 in Cedar Realty Trust on September 4, 2024 and sell it today you would earn a total of 453.00 from holding Cedar Realty Trust or generate 38.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cedar Realty Trust vs. Brunswick
Performance |
| Timeline |
| Cedar Realty Trust |
| Brunswick |
Cedar Realty and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Brunswick
The main advantage of trading using opposite Cedar Realty and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Brunswick vs. Thor Industries | Brunswick vs. BRP Inc | Brunswick vs. EZGO Technologies | Brunswick vs. Polaris Industries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |