Correlation Between Cedar Realty and Zedge
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Zedge 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 Zedge 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 Zedge Inc, you can compare the effects of market volatilities on Cedar Realty and Zedge 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 Zedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Zedge.
Diversification Opportunities for Cedar Realty and Zedge
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and Zedge is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Zedge Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedge Inc 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 Zedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedge Inc has no effect on the direction of Cedar Realty i.e., Cedar Realty and Zedge go up and down completely randomly.
Pair Corralation between Cedar Realty and Zedge
Assuming the 90 days trading horizon Cedar Realty Trust is expected to under-perform the Zedge. But the preferred stock apears to be less risky and, when comparing its historical volatility, Cedar Realty Trust is 1.18 times less risky than Zedge. The preferred stock trades about -0.1 of its potential returns per unit of risk. The Zedge Inc is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 281.00 in Zedge Inc on September 12, 2024 and sell it today you would lose (13.00) from holding Zedge Inc or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cedar Realty Trust vs. Zedge Inc
Performance |
| Timeline |
| Cedar Realty Trust |
| Zedge Inc |
Cedar Realty and Zedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Zedge
The main advantage of trading using opposite Cedar Realty and Zedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Zedge 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 Zedge will offset losses from the drop in Zedge's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Zedge vs. Twilio Inc | Zedge vs. Meta Platforms | Zedge vs. Alphabet Inc Class C | Zedge vs. Alphabet Inc Class 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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