Correlation Between Cedar Realty and Marine Products
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Marine Products 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 Marine Products 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 Marine Products, you can compare the effects of market volatilities on Cedar Realty and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Marine Products.
Diversification Opportunities for Cedar Realty and Marine Products
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cedar and Marine is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Cedar Realty i.e., Cedar Realty and Marine Products go up and down completely randomly.
Pair Corralation between Cedar Realty and Marine Products
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.07 times more return on investment than Marine Products. However, Cedar Realty is 1.07 times more volatile than Marine Products. It trades about 0.18 of its potential returns per unit of risk. Marine Products is currently generating about 0.18 per unit of risk. If you would invest 1,534 in Cedar Realty Trust on September 2, 2024 and sell it today you would earn a total of 104.00 from holding Cedar Realty Trust or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Marine Products
Performance |
| Timeline |
| Cedar Realty Trust |
| Marine Products |
Cedar Realty and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Marine Products
The main advantage of trading using opposite Cedar Realty and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' 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 |
| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. Thor Industries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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