Correlation Between Cedar Realty and W P
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and W P 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 W P 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 W P Carey, you can compare the effects of market volatilities on Cedar Realty and W P 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 W P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and W P.
Diversification Opportunities for Cedar Realty and W P
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and WPC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and W P Carey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on W P Carey 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 W P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of W P Carey has no effect on the direction of Cedar Realty i.e., Cedar Realty and W P go up and down completely randomly.
Pair Corralation between Cedar Realty and W P
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.46 times more return on investment than W P. However, Cedar Realty is 1.46 times more volatile than W P Carey. It trades about 0.06 of its potential returns per unit of risk. W P Carey is currently generating about -0.02 per unit of risk. If you would invest 877.00 in Cedar Realty Trust on August 27, 2024 and sell it today you would earn a total of 533.00 from holding Cedar Realty Trust or generate 60.78% 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. W P Carey
Performance |
| Timeline |
| Cedar Realty Trust |
| W P Carey |
Cedar Realty and W P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and W P
The main advantage of trading using opposite Cedar Realty and W P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, W P 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 W P will offset losses from the drop in W P'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 |
| W P vs. STAG Industrial | W P vs. National Retail Properties | W P vs. Medical Properties Trust | W P vs. Omega Healthcare Investors |
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.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |