Correlation Between Kennedy Wilson and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson 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 Kennedy Wilson and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kennedy Wilson Holdings and Cedar Realty Trust, you can compare the effects of market volatilities on Kennedy Wilson 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 Kennedy Wilson with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and Cedar Realty.
Diversification Opportunities for Kennedy Wilson and Cedar Realty
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kennedy and Cedar is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings 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 Kennedy Wilson 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 Kennedy Wilson Holdings 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 Kennedy Wilson i.e., Kennedy Wilson and Cedar Realty go up and down completely randomly.
Pair Corralation between Kennedy Wilson and Cedar Realty
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to under-perform the Cedar Realty. In addition to that, Kennedy Wilson is 1.42 times more volatile than Cedar Realty Trust. It trades about -0.08 of its total potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.1 per unit of volatility. If you would invest 1,304 in Cedar Realty Trust on November 2, 2024 and sell it today you would earn a total of 177.00 from holding Cedar Realty Trust or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. Cedar Realty Trust
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| Cedar Realty Trust |
Kennedy Wilson and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and Cedar Realty
The main advantage of trading using opposite Kennedy Wilson and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson 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.| Kennedy Wilson vs. Frp Holdings Ord | Kennedy Wilson vs. Transcontinental Realty Investors | Kennedy Wilson vs. Anywhere Real Estate | Kennedy Wilson vs. Re Max Holding |
| Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. CBL Associates Properties | Cedar Realty vs. Saul Centers | Cedar Realty vs. Federal Realty Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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