Correlation Between Smart REIT and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Smart REIT and Urban Edge 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 Smart REIT and Urban Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart REIT and Urban Edge Properties, you can compare the effects of market volatilities on Smart REIT and Urban Edge 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 Smart REIT with a short position of Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart REIT and Urban Edge.
Diversification Opportunities for Smart REIT and Urban Edge
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Smart and Urban is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Smart REIT and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties and Smart REIT 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 Smart REIT are associated (or correlated) with Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Smart REIT i.e., Smart REIT and Urban Edge go up and down completely randomly.
Pair Corralation between Smart REIT and Urban Edge
Assuming the 90 days horizon Smart REIT is expected to under-perform the Urban Edge. In addition to that, Smart REIT is 1.06 times more volatile than Urban Edge Properties. It trades about -0.07 of its total potential returns per unit of risk. Urban Edge Properties is currently generating about 0.17 per unit of volatility. If you would invest 2,216 in Urban Edge Properties on August 28, 2024 and sell it today you would earn a total of 97.00 from holding Urban Edge Properties or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart REIT vs. Urban Edge Properties
Performance |
| Timeline |
| Smart REIT |
| Urban Edge Properties |
Smart REIT and Urban Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart REIT and Urban Edge
The main advantage of trading using opposite Smart REIT and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart REIT position performs unexpectedly, Urban Edge 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 Urban Edge will offset losses from the drop in Urban Edge's long position.| Smart REIT vs. Firm Capital Property | Smart REIT vs. CT Real Estate | Smart REIT vs. Slate Grocery REIT | Smart REIT vs. Phillips Edison Co |
| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
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
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |