Correlation Between Cedar Realty and Maui Land
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Maui Land 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 Maui Land 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 Maui Land Pineapple, you can compare the effects of market volatilities on Cedar Realty and Maui Land 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 Maui Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Maui Land.
Diversification Opportunities for Cedar Realty and Maui Land
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and Maui is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Maui Land Pineapple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maui Land Pineapple 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 Maui Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maui Land Pineapple has no effect on the direction of Cedar Realty i.e., Cedar Realty and Maui Land go up and down completely randomly.
Pair Corralation between Cedar Realty and Maui Land
Assuming the 90 days trading horizon Cedar Realty is expected to generate 2.86 times less return on investment than Maui Land. But when comparing it to its historical volatility, Cedar Realty Trust is 3.75 times less risky than Maui Land. It trades about 0.12 of its potential returns per unit of risk. Maui Land Pineapple is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,221 in Maui Land Pineapple on August 28, 2024 and sell it today you would earn a total of 132.00 from holding Maui Land Pineapple or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Maui Land Pineapple
Performance |
| Timeline |
| Cedar Realty Trust |
| Maui Land Pineapple |
Cedar Realty and Maui Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Maui Land
The main advantage of trading using opposite Cedar Realty and Maui Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Maui Land 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 Maui Land will offset losses from the drop in Maui Land's long position.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
| Maui Land vs. New England Realty | Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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