Correlation Between Loop Media and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Loop Media 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 Loop Media and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loop Media and Cedar Realty Trust, you can compare the effects of market volatilities on Loop Media 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 Loop Media with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loop Media and Cedar Realty.
Diversification Opportunities for Loop Media and Cedar Realty
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loop and Cedar is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loop Media 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 Loop Media 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 Loop Media 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 Loop Media i.e., Loop Media and Cedar Realty go up and down completely randomly.
Pair Corralation between Loop Media and Cedar Realty
Given the investment horizon of 90 days Loop Media is expected to under-perform the Cedar Realty. In addition to that, Loop Media is 5.26 times more volatile than Cedar Realty Trust. It trades about -0.07 of its total potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.04 per unit of volatility. If you would invest 1,477 in Cedar Realty Trust on September 3, 2024 and sell it today you would earn a total of 161.00 from holding Cedar Realty Trust or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 47.95% |
| Values | Daily Returns |
Loop Media vs. Cedar Realty Trust
Performance |
| Timeline |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cedar Realty Trust |
Loop Media and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loop Media and Cedar Realty
The main advantage of trading using opposite Loop Media and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loop Media 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.| Loop Media vs. Summit Materials | Loop Media vs. BOS Better Online | Loop Media vs. Eldorado Gold Corp | Loop Media vs. Highway Holdings Limited |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |