Correlation Between Cedar Realty and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and CapitaLand Integrated 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 CapitaLand Integrated 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 CapitaLand Integrated Commercial, you can compare the effects of market volatilities on Cedar Realty and CapitaLand Integrated 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 CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and CapitaLand Integrated.
Diversification Opportunities for Cedar Realty and CapitaLand Integrated
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cedar and CapitaLand is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated 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 CapitaLand Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Integrated has no effect on the direction of Cedar Realty i.e., Cedar Realty and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between Cedar Realty and CapitaLand Integrated
Assuming the 90 days trading horizon Cedar Realty is expected to generate 1.86 times less return on investment than CapitaLand Integrated. In addition to that, Cedar Realty is 1.02 times more volatile than CapitaLand Integrated Commercial. It trades about 0.12 of its total potential returns per unit of risk. CapitaLand Integrated Commercial is currently generating about 0.23 per unit of volatility. If you would invest 130.00 in CapitaLand Integrated Commercial on October 24, 2024 and sell it today you would earn a total of 19.00 from holding CapitaLand Integrated Commercial or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
| Cedar Realty Trust |
| CapitaLand Integrated |
Cedar Realty and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and CapitaLand Integrated
The main advantage of trading using opposite Cedar Realty and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, CapitaLand Integrated 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 CapitaLand Integrated will offset losses from the drop in CapitaLand Integrated's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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