Correlation Between Greencore Group and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Greencore Group 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 Greencore Group and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greencore Group PLC and Cedar Realty Trust, you can compare the effects of market volatilities on Greencore Group 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 Greencore Group with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greencore Group and Cedar Realty.
Diversification Opportunities for Greencore Group and Cedar Realty
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greencore and Cedar is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Greencore Group PLC 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 Greencore Group 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 Greencore Group PLC 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 Greencore Group i.e., Greencore Group and Cedar Realty go up and down completely randomly.
Pair Corralation between Greencore Group and Cedar Realty
Assuming the 90 days horizon Greencore Group PLC is expected to generate 0.95 times more return on investment than Cedar Realty. However, Greencore Group PLC is 1.06 times less risky than Cedar Realty. It trades about 0.16 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.05 per unit of risk. If you would invest 1,031 in Greencore Group PLC on September 13, 2024 and sell it today you would earn a total of 89.00 from holding Greencore Group PLC or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greencore Group PLC vs. Cedar Realty Trust
Performance |
| Timeline |
| Greencore Group PLC |
| Cedar Realty Trust |
Greencore Group and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greencore Group and Cedar Realty
The main advantage of trading using opposite Greencore Group and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greencore Group 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.| Greencore Group vs. Playtika Holding Corp | Greencore Group vs. GAMCO Global Gold | Greencore Group vs. Emerson Radio | Greencore Group vs. Univest Pennsylvania |
| Cedar Realty vs. Simon Property Group | Cedar Realty vs. Saul Centers | Cedar Realty vs. Rithm Property Trust | Cedar Realty vs. Urban Edge Properties |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |