Correlation Between Cedar Realty and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Marfrig Global 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 Marfrig Global 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 Marfrig Global Foods, you can compare the effects of market volatilities on Cedar Realty and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Marfrig Global.
Diversification Opportunities for Cedar Realty and Marfrig Global
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cedar and Marfrig is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods 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 Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of Cedar Realty i.e., Cedar Realty and Marfrig Global go up and down completely randomly.
Pair Corralation between Cedar Realty and Marfrig Global
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.6 times more return on investment than Marfrig Global. However, Cedar Realty Trust is 1.67 times less risky than Marfrig Global. It trades about 0.11 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about -0.03 per unit of risk. If you would invest 1,545 in Cedar Realty Trust on November 2, 2024 and sell it today you would earn a total of 69.00 from holding Cedar Realty Trust or generate 4.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cedar Realty Trust vs. Marfrig Global Foods
Performance |
Timeline |
Cedar Realty Trust |
Marfrig Global Foods |
Cedar Realty and Marfrig Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cedar Realty and Marfrig Global
The main advantage of trading using opposite Cedar Realty and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position.Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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