Correlation Between Federal Realty and Urstadt Biddle
Can any of the company-specific risk be diversified away by investing in both Federal Realty and Urstadt Biddle 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 Federal Realty and Urstadt Biddle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Realty Investment and Urstadt Biddle Properties, you can compare the effects of market volatilities on Federal Realty and Urstadt Biddle 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 Federal Realty with a short position of Urstadt Biddle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Realty and Urstadt Biddle.
Diversification Opportunities for Federal Realty and Urstadt Biddle
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federal and Urstadt is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Federal Realty Investment and Urstadt Biddle Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urstadt Biddle Properties and Federal 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 Federal Realty Investment are associated (or correlated) with Urstadt Biddle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urstadt Biddle Properties has no effect on the direction of Federal Realty i.e., Federal Realty and Urstadt Biddle go up and down completely randomly.
Pair Corralation between Federal Realty and Urstadt Biddle
If you would invest 11,324 in Federal Realty Investment on August 28, 2024 and sell it today you would earn a total of 274.00 from holding Federal Realty Investment or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Federal Realty Investment vs. Urstadt Biddle Properties
Performance |
| Timeline |
| Federal Realty Investment |
| Urstadt Biddle Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Federal Realty and Urstadt Biddle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Realty and Urstadt Biddle
The main advantage of trading using opposite Federal Realty and Urstadt Biddle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Realty position performs unexpectedly, Urstadt Biddle 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 Urstadt Biddle will offset losses from the drop in Urstadt Biddle's long position.| Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco Realty |
| Urstadt Biddle vs. Kimco Realty | Urstadt Biddle vs. Saul Centers | Urstadt Biddle vs. Brixmor Property | Urstadt Biddle vs. Regency Centers |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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