Correlation Between Cedar Realty and PS Business
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on Cedar Realty and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and PS Business.
Diversification Opportunities for Cedar Realty and PS Business
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cedar and PSBZP is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Cedar Realty i.e., Cedar Realty and PS Business go up and down completely randomly.
Pair Corralation between Cedar Realty and PS Business
If you would invest 1,512 in Cedar Realty Trust on August 29, 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 Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cedar Realty Trust vs. PS Business Parks
Performance |
| Timeline |
| Cedar Realty Trust |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cedar Realty and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and PS Business
The main advantage of trading using opposite Cedar Realty and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| PS Business vs. Eastman Kodak Co | PS Business vs. The Gap, | PS Business vs. Yuexiu Transport Infrastructure | PS Business vs. Stepan Company |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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