Correlation Between Cedar Realty and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Tanger Factory 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 Tanger Factory 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 Tanger Factory Outlet, you can compare the effects of market volatilities on Cedar Realty and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Tanger Factory.
Diversification Opportunities for Cedar Realty and Tanger Factory
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cedar and Tanger is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Cedar Realty i.e., Cedar Realty and Tanger Factory go up and down completely randomly.
Pair Corralation between Cedar Realty and Tanger Factory
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.56 times more return on investment than Tanger Factory. However, Cedar Realty Trust is 1.79 times less risky than Tanger Factory. It trades about -0.08 of its potential returns per unit of risk. Tanger Factory Outlet is currently generating about -0.05 per unit of risk. If you would invest 1,493 in Cedar Realty Trust on November 5, 2024 and sell it today you would lose (14.00) from holding Cedar Realty Trust or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Tanger Factory Outlet
Performance |
| Timeline |
| Cedar Realty Trust |
| Tanger Factory Outlet |
Cedar Realty and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Tanger Factory
The main advantage of trading using opposite Cedar Realty and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.| Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. CBL Associates Properties | Cedar Realty vs. Saul Centers | Cedar Realty vs. Federal Realty Investment |
| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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