Correlation Between Cedar Realty and NextEra Energy,
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and NextEra Energy, 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 NextEra Energy, 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 NextEra Energy,, you can compare the effects of market volatilities on Cedar Realty and NextEra Energy, 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 NextEra Energy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and NextEra Energy,.
Diversification Opportunities for Cedar Realty and NextEra Energy,
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and NextEra is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and NextEra Energy, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextEra Energy, 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 NextEra Energy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextEra Energy, has no effect on the direction of Cedar Realty i.e., Cedar Realty and NextEra Energy, go up and down completely randomly.
Pair Corralation between Cedar Realty and NextEra Energy,
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.49 times more return on investment than NextEra Energy,. However, Cedar Realty is 1.49 times more volatile than NextEra Energy,. It trades about 0.16 of its potential returns per unit of risk. NextEra Energy, is currently generating about -0.2 per unit of risk. If you would invest 1,512 in Cedar Realty Trust on August 28, 2024 and sell it today you would earn a total of 108.00 from holding Cedar Realty Trust or generate 7.14% 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. NextEra Energy,
Performance |
| Timeline |
| Cedar Realty Trust |
| NextEra Energy, |
Cedar Realty and NextEra Energy, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and NextEra Energy,
The main advantage of trading using opposite Cedar Realty and NextEra Energy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, NextEra Energy, 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 NextEra Energy, will offset losses from the drop in NextEra Energy,'s long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
| NextEra Energy, vs. Elmos Semiconductor SE | NextEra Energy, vs. Kite Realty Group | NextEra Energy, vs. Cedar Realty Trust | NextEra Energy, vs. MACOM Technology Solutions |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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