Correlation Between Curbline Properties and DigitalBridge
Can any of the company-specific risk be diversified away by investing in both Curbline Properties and DigitalBridge 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 Curbline Properties and DigitalBridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curbline Properties Corp and DigitalBridge Group, you can compare the effects of market volatilities on Curbline Properties and DigitalBridge 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 Curbline Properties with a short position of DigitalBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curbline Properties and DigitalBridge.
Diversification Opportunities for Curbline Properties and DigitalBridge
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Curbline and DigitalBridge is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Curbline Properties Corp and DigitalBridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigitalBridge Group and Curbline Properties 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 Curbline Properties Corp are associated (or correlated) with DigitalBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigitalBridge Group has no effect on the direction of Curbline Properties i.e., Curbline Properties and DigitalBridge go up and down completely randomly.
Pair Corralation between Curbline Properties and DigitalBridge
Given the investment horizon of 90 days Curbline Properties Corp is expected to generate 1.9 times more return on investment than DigitalBridge. However, Curbline Properties is 1.9 times more volatile than DigitalBridge Group. It trades about 0.04 of its potential returns per unit of risk. DigitalBridge Group is currently generating about -0.04 per unit of risk. If you would invest 2,320 in Curbline Properties Corp on September 26, 2024 and sell it today you would earn a total of 53.00 from holding Curbline Properties Corp or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curbline Properties Corp vs. DigitalBridge Group
Performance |
| Timeline |
| Curbline Properties Corp |
| DigitalBridge Group |
Curbline Properties and DigitalBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curbline Properties and DigitalBridge
The main advantage of trading using opposite Curbline Properties and DigitalBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curbline Properties position performs unexpectedly, DigitalBridge 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 DigitalBridge will offset losses from the drop in DigitalBridge's long position.| Curbline Properties vs. Viemed Healthcare | Curbline Properties vs. Neogen | Curbline Properties vs. KeyCorp | Curbline Properties vs. Sonida Senior Living |
| DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. Chimera Investment | DigitalBridge vs. Cherry Hill Mortgage |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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