Correlation Between Cedar Realty and Hudson Acquisition
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Hudson Acquisition 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 Hudson Acquisition 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 Hudson Acquisition I, you can compare the effects of market volatilities on Cedar Realty and Hudson Acquisition 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 Hudson Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Hudson Acquisition.
Diversification Opportunities for Cedar Realty and Hudson Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cedar and Hudson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Hudson Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Acquisition 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 Hudson Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Acquisition has no effect on the direction of Cedar Realty i.e., Cedar Realty and Hudson Acquisition go up and down completely randomly.
Pair Corralation between Cedar Realty and Hudson Acquisition
If you would invest 1,256 in Hudson Acquisition I on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Hudson Acquisition I or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Hudson Acquisition I
Performance |
| Timeline |
| Cedar Realty Trust |
| Hudson Acquisition |
Cedar Realty and Hudson Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Hudson Acquisition
The main advantage of trading using opposite Cedar Realty and Hudson Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Hudson Acquisition 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 Hudson Acquisition will offset losses from the drop in Hudson Acquisition's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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