Correlation Between Cedar Realty and RPT Realty
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and RPT Realty 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 RPT Realty 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 RPT Realty, you can compare the effects of market volatilities on Cedar Realty and RPT Realty 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 RPT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and RPT Realty.
Diversification Opportunities for Cedar Realty and RPT Realty
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cedar and RPT is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and RPT Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPT Realty 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 RPT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPT Realty has no effect on the direction of Cedar Realty i.e., Cedar Realty and RPT Realty go up and down completely randomly.
Pair Corralation between Cedar Realty and RPT Realty
If you would invest 1,512 in Cedar Realty Trust on August 24, 2024 and sell it today you would earn a total of 69.00 from holding Cedar Realty Trust or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Cedar Realty Trust vs. RPT Realty
Performance |
| Timeline |
| Cedar Realty Trust |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cedar Realty and RPT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and RPT Realty
The main advantage of trading using opposite Cedar Realty and RPT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, RPT Realty 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 RPT Realty will offset losses from the drop in RPT Realty's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |