Correlation Between Cedar Realty and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Barrick Gold 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 Barrick Gold 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 Barrick Gold Corp, you can compare the effects of market volatilities on Cedar Realty and Barrick Gold 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 Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Barrick Gold.
Diversification Opportunities for Cedar Realty and Barrick Gold
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cedar and Barrick is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Cedar Realty i.e., Cedar Realty and Barrick Gold go up and down completely randomly.
Pair Corralation between Cedar Realty and Barrick Gold
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.43 times more return on investment than Barrick Gold. However, Cedar Realty is 1.43 times more volatile than Barrick Gold Corp. It trades about 0.04 of its potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 1,023 in Cedar Realty Trust on September 12, 2024 and sell it today you would earn a total of 506.00 from holding Cedar Realty Trust or generate 49.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cedar Realty Trust vs. Barrick Gold Corp
Performance |
| Timeline |
| Cedar Realty Trust |
| Barrick Gold Corp |
Cedar Realty and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Barrick Gold
The main advantage of trading using opposite Cedar Realty and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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