Correlation Between Cedar Realty and Link Real
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Link Real 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 Link Real 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 Link Real Estate, you can compare the effects of market volatilities on Cedar Realty and Link Real 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 Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Link Real.
Diversification Opportunities for Cedar Realty and Link Real
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cedar and Link is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate 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 Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of Cedar Realty i.e., Cedar Realty and Link Real go up and down completely randomly.
Pair Corralation between Cedar Realty and Link Real
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.13 times more return on investment than Link Real. However, Cedar Realty is 1.13 times more volatile than Link Real Estate. It trades about 0.06 of its potential returns per unit of risk. Link Real Estate is currently generating about -0.01 per unit of risk. If you would invest 1,401 in Cedar Realty Trust on November 2, 2024 and sell it today you would earn a total of 213.00 from holding Cedar Realty Trust or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Link Real Estate
Performance |
| Timeline |
| Cedar Realty Trust |
| Link Real Estate |
Cedar Realty and Link Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Link Real
The main advantage of trading using opposite Cedar Realty and Link Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Link Real 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 Link Real will offset losses from the drop in Link Real's long position.| Cedar Realty vs. Site Centers Corp | Cedar Realty vs. Urban Edge Properties | Cedar Realty vs. Retail Opportunity Investments | Cedar Realty vs. Brixmor Property |
| Link Real vs. Cedar Realty Trust | Link Real vs. Wheeler Real Estate | Link Real vs. Macerich Company | Link Real vs. Simon Property Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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