Correlation Between Cedar Realty and Greencore Group
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Greencore Group 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 Greencore Group 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 Greencore Group PLC, you can compare the effects of market volatilities on Cedar Realty and Greencore Group 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 Greencore Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Greencore Group.
Diversification Opportunities for Cedar Realty and Greencore Group
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cedar and Greencore is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Greencore Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencore Group PLC 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 Greencore Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencore Group PLC has no effect on the direction of Cedar Realty i.e., Cedar Realty and Greencore Group go up and down completely randomly.
Pair Corralation between Cedar Realty and Greencore Group
Assuming the 90 days trading horizon Cedar Realty is expected to generate 3.21 times less return on investment than Greencore Group. In addition to that, Cedar Realty is 1.06 times more volatile than Greencore Group PLC. It trades about 0.05 of its total potential returns per unit of risk. Greencore Group PLC is currently generating about 0.16 per unit of volatility. If you would invest 1,031 in Greencore Group PLC on September 13, 2024 and sell it today you would earn a total of 89.00 from holding Greencore Group PLC or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Greencore Group PLC
Performance |
| Timeline |
| Cedar Realty Trust |
| Greencore Group PLC |
Cedar Realty and Greencore Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Greencore Group
The main advantage of trading using opposite Cedar Realty and Greencore Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Greencore Group 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 Greencore Group will offset losses from the drop in Greencore Group's long position.| Cedar Realty vs. Simon Property Group | Cedar Realty vs. Saul Centers | Cedar Realty vs. Rithm Property Trust | Cedar Realty vs. Urban Edge Properties |
| Greencore Group vs. Playtika Holding Corp | Greencore Group vs. GAMCO Global Gold | Greencore Group vs. Emerson Radio | Greencore Group vs. Univest Pennsylvania |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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