Correlation Between Cedar Realty and JD Sports
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and JD Sports 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 JD Sports 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 JD Sports Fashion, you can compare the effects of market volatilities on Cedar Realty and JD Sports 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 JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and JD Sports.
Diversification Opportunities for Cedar Realty and JD Sports
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and JDSPY is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Cedar Realty i.e., Cedar Realty and JD Sports go up and down completely randomly.
Pair Corralation between Cedar Realty and JD Sports
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.39 times more return on investment than JD Sports. However, Cedar Realty Trust is 2.54 times less risky than JD Sports. It trades about 0.11 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.3 per unit of risk. If you would invest 1,512 in Cedar Realty Trust on August 27, 2024 and sell it today you would earn a total of 69.00 from holding Cedar Realty Trust or generate 4.56% 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. JD Sports Fashion
Performance |
| Timeline |
| Cedar Realty Trust |
| JD Sports Fashion |
Cedar Realty and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and JD Sports
The main advantage of trading using opposite Cedar Realty and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |