Correlation Between Cedar Realty and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Grupo Simec 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 Grupo Simec 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 Grupo Simec SAB, you can compare the effects of market volatilities on Cedar Realty and Grupo Simec 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 Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Grupo Simec.
Diversification Opportunities for Cedar Realty and Grupo Simec
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and Grupo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB 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 Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of Cedar Realty i.e., Cedar Realty and Grupo Simec go up and down completely randomly.
Pair Corralation between Cedar Realty and Grupo Simec
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.82 times more return on investment than Grupo Simec. However, Cedar Realty Trust is 1.22 times less risky than Grupo Simec. It trades about 0.04 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about 0.0 per unit of risk. If you would invest 1,081 in Cedar Realty Trust on August 30, 2024 and sell it today you would earn a total of 539.00 from holding Cedar Realty Trust or generate 49.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.48% |
| Values | Daily Returns |
Cedar Realty Trust vs. Grupo Simec SAB
Performance |
| Timeline |
| Cedar Realty Trust |
| Grupo Simec SAB |
Cedar Realty and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Grupo Simec
The main advantage of trading using opposite Cedar Realty and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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