Correlation Between Cedar Realty and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and GameStop Corp 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 GameStop Corp 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 GameStop Corp, you can compare the effects of market volatilities on Cedar Realty and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and GameStop Corp.
Diversification Opportunities for Cedar Realty and GameStop Corp
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cedar and GameStop is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of Cedar Realty i.e., Cedar Realty and GameStop Corp go up and down completely randomly.
Pair Corralation between Cedar Realty and GameStop Corp
Assuming the 90 days trading horizon Cedar Realty is expected to generate 2.31 times less return on investment than GameStop Corp. But when comparing it to its historical volatility, Cedar Realty Trust is 2.51 times less risky than GameStop Corp. It trades about 0.04 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,237 in GameStop Corp on November 27, 2024 and sell it today you would earn a total of 263.00 from holding GameStop Corp or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. GameStop Corp
Performance |
| Timeline |
| Cedar Realty Trust |
| GameStop Corp |
Cedar Realty and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and GameStop Corp
The main advantage of trading using opposite Cedar Realty and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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