Correlation Between Cedar Realty and CBL Associates
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and CBL Associates 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 CBL Associates 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 CBL Associates Properties, you can compare the effects of market volatilities on Cedar Realty and CBL Associates 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 CBL Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and CBL Associates.
Diversification Opportunities for Cedar Realty and CBL Associates
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cedar and CBL is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and CBL Associates Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBL Associates Properties 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 CBL Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBL Associates Properties has no effect on the direction of Cedar Realty i.e., Cedar Realty and CBL Associates go up and down completely randomly.
Pair Corralation between Cedar Realty and CBL Associates
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 2.03 times more return on investment than CBL Associates. However, Cedar Realty is 2.03 times more volatile than CBL Associates Properties. It trades about 0.07 of its potential returns per unit of risk. CBL Associates Properties is currently generating about 0.1 per unit of risk. If you would invest 1,503 in Cedar Realty Trust on October 25, 2024 and sell it today you would earn a total of 170.00 from holding Cedar Realty Trust or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Cedar Realty Trust vs. CBL Associates Properties
Performance |
| Timeline |
| Cedar Realty Trust |
| CBL Associates Properties |
Cedar Realty and CBL Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and CBL Associates
The main advantage of trading using opposite Cedar Realty and CBL Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, CBL Associates 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 CBL Associates will offset losses from the drop in CBL Associates' long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| CBL Associates vs. Kite Realty Group | CBL Associates vs. Site Centers Corp | CBL Associates vs. Urban Edge Properties | CBL Associates vs. Acadia Realty Trust |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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