Correlation Between Cedar Realty and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Doubledown Interactive 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 Doubledown Interactive 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 Doubledown Interactive Co, you can compare the effects of market volatilities on Cedar Realty and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Doubledown Interactive.
Diversification Opportunities for Cedar Realty and Doubledown Interactive
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cedar and Doubledown is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Cedar Realty i.e., Cedar Realty and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Cedar Realty and Doubledown Interactive
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.68 times more return on investment than Doubledown Interactive. However, Cedar Realty is 1.68 times more volatile than Doubledown Interactive Co. It trades about 0.07 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.02 per unit of risk. If you would invest 1,655 in Cedar Realty Trust on November 27, 2024 and sell it today you would earn a total of 67.00 from holding Cedar Realty Trust or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Doubledown Interactive Co
Performance |
| Timeline |
| Cedar Realty Trust |
| Doubledown Interactive |
Cedar Realty and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Doubledown Interactive
The main advantage of trading using opposite Cedar Realty and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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