Correlation Between Cedar Realty and Codexis
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Codexis 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 Codexis 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 Codexis, you can compare the effects of market volatilities on Cedar Realty and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Codexis.
Diversification Opportunities for Cedar Realty and Codexis
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cedar and Codexis is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Cedar Realty i.e., Cedar Realty and Codexis go up and down completely randomly.
Pair Corralation between Cedar Realty and Codexis
Assuming the 90 days trading horizon Cedar Realty is expected to generate 1.47 times less return on investment than Codexis. But when comparing it to its historical volatility, Cedar Realty Trust is 1.75 times less risky than Codexis. It trades about 0.08 of its potential returns per unit of risk. Codexis is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Codexis on September 1, 2024 and sell it today you would earn a total of 110.00 from holding Codexis or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Codexis
Performance |
| Timeline |
| Cedar Realty Trust |
| Codexis |
Cedar Realty and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Codexis
The main advantage of trading using opposite Cedar Realty and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.| Cedar Realty vs. Site Centers Corp | Cedar Realty vs. Urban Edge Properties | Cedar Realty vs. Retail Opportunity Investments | Cedar Realty vs. Brixmor Property |
| Codexis vs. Verve Therapeutics | Codexis vs. Beam Therapeutics | Codexis vs. Caribou Biosciences | Codexis vs. Sana Biotechnology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |