Correlation Between Nomura Holdings and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings 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 Nomura Holdings and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomura Holdings ADR and Cedar Realty Trust, you can compare the effects of market volatilities on Nomura Holdings 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 Nomura Holdings with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and Cedar Realty.
Diversification Opportunities for Nomura Holdings and Cedar Realty
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nomura and Cedar is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR 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 Nomura Holdings 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 Nomura Holdings ADR 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 Nomura Holdings i.e., Nomura Holdings and Cedar Realty go up and down completely randomly.
Pair Corralation between Nomura Holdings and Cedar Realty
Considering the 90-day investment horizon Nomura Holdings is expected to generate 1.77 times less return on investment than Cedar Realty. But when comparing it to its historical volatility, Nomura Holdings ADR is 1.24 times less risky than Cedar Realty. It trades about 0.02 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,421 in Cedar Realty Trust on August 27, 2024 and sell it today you would earn a total of 160.00 from holding Cedar Realty Trust or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomura Holdings ADR vs. Cedar Realty Trust
Performance |
| Timeline |
| Nomura Holdings ADR |
| Cedar Realty Trust |
Nomura Holdings and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and Cedar Realty
The main advantage of trading using opposite Nomura Holdings and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings 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.| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |