Correlation Between Cedar Realty and Universal Display
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Universal Display 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 Universal Display 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 Universal Display, you can compare the effects of market volatilities on Cedar Realty and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Universal Display.
Diversification Opportunities for Cedar Realty and Universal Display
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and Universal is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of Cedar Realty i.e., Cedar Realty and Universal Display go up and down completely randomly.
Pair Corralation between Cedar Realty and Universal Display
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.03 times more return on investment than Universal Display. However, Cedar Realty is 1.03 times more volatile than Universal Display. It trades about 0.05 of its potential returns per unit of risk. Universal Display is currently generating about 0.0 per unit of risk. If you would invest 1,244 in Cedar Realty Trust on August 29, 2024 and sell it today you would earn a total of 376.00 from holding Cedar Realty Trust or generate 30.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cedar Realty Trust vs. Universal Display
Performance |
| Timeline |
| Cedar Realty Trust |
| Universal Display |
Cedar Realty and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Universal Display
The main advantage of trading using opposite Cedar Realty and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Universal Display vs. Plexus Corp | Universal Display vs. Methode Electronics | Universal Display vs. Benchmark Electronics | Universal Display vs. Bel Fuse A |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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