Correlation Between Cedar Realty and Zhihu
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Zhihu 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 Zhihu 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 Zhihu Inc ADR, you can compare the effects of market volatilities on Cedar Realty and Zhihu 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 Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Zhihu.
Diversification Opportunities for Cedar Realty and Zhihu
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cedar and Zhihu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR 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 Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of Cedar Realty i.e., Cedar Realty and Zhihu go up and down completely randomly.
Pair Corralation between Cedar Realty and Zhihu
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.65 times more return on investment than Zhihu. However, Cedar Realty Trust is 1.53 times less risky than Zhihu. It trades about 0.04 of its potential returns per unit of risk. Zhihu Inc ADR is currently generating about -0.02 per unit of risk. If you would invest 1,023 in Cedar Realty Trust on September 12, 2024 and sell it today you would earn a total of 506.00 from holding Cedar Realty Trust or generate 49.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cedar Realty Trust vs. Zhihu Inc ADR
Performance |
| Timeline |
| Cedar Realty Trust |
| Zhihu Inc ADR |
Cedar Realty and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Zhihu
The main advantage of trading using opposite Cedar Realty and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Zhihu 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 Zhihu will offset losses from the drop in Zhihu's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Zhihu vs. Twilio Inc | Zhihu vs. Meta Platforms | Zhihu vs. Alphabet Inc Class C | Zhihu 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |