Correlation Between Canlan Ice and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Cedar Realty 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 Canlan Ice and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Cedar Realty Trust, you can compare the effects of market volatilities on Canlan Ice and Cedar Realty 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 Canlan Ice with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Cedar Realty.
Diversification Opportunities for Canlan Ice and Cedar Realty
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canlan and Cedar is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Canlan Ice i.e., Canlan Ice and Cedar Realty go up and down completely randomly.
Pair Corralation between Canlan Ice and Cedar Realty
Assuming the 90 days horizon Canlan Ice is expected to generate 9.28 times less return on investment than Cedar Realty. But when comparing it to its historical volatility, Canlan Ice Sports is 24.51 times less risky than Cedar Realty. It trades about 0.14 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,244 in Cedar Realty Trust on August 29, 2024 and sell it today you would earn a total of 376.00 from holding Cedar Realty Trust or generate 30.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Cedar Realty Trust
Performance |
| Timeline |
| Canlan Ice Sports |
| Cedar Realty Trust |
Canlan Ice and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Cedar Realty
The main advantage of trading using opposite Canlan Ice and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. Carnival Plc ADS | Canlan Ice vs. BANDAI NAMCO Holdings |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |