Correlation Between Cedar Realty and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment, you can compare the effects of market volatilities on Cedar Realty and Dolphin Entertainment 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 Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Dolphin Entertainment.
Diversification Opportunities for Cedar Realty and Dolphin Entertainment
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cedar and Dolphin is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment 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 Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Cedar Realty i.e., Cedar Realty and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between Cedar Realty and Dolphin Entertainment
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.62 times more return on investment than Dolphin Entertainment. However, Cedar Realty Trust is 1.62 times less risky than Dolphin Entertainment. It trades about 0.05 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.08 per unit of risk. If you would invest 1,298 in Cedar Realty Trust on August 28, 2024 and sell it today you would earn a total of 322.00 from holding Cedar Realty Trust or generate 24.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Dolphin Entertainment
Performance |
| Timeline |
| Cedar Realty Trust |
| Dolphin Entertainment |
Cedar Realty and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Dolphin Entertainment
The main advantage of trading using opposite Cedar Realty and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
| Dolphin Entertainment vs. ADTRAN Inc | Dolphin Entertainment vs. Belden Inc | Dolphin Entertainment vs. ADC Therapeutics SA | Dolphin Entertainment vs. Comtech Telecommunications Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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