Correlation Between Power REIT and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Power REIT and Urban Edge 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 Power REIT and Urban Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power REIT and Urban Edge Properties, you can compare the effects of market volatilities on Power REIT and Urban Edge 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 Power REIT with a short position of Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power REIT and Urban Edge.
Diversification Opportunities for Power REIT and Urban Edge
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Power and Urban is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Power REIT and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties and Power REIT 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 Power REIT are associated (or correlated) with Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Power REIT i.e., Power REIT and Urban Edge go up and down completely randomly.
Pair Corralation between Power REIT and Urban Edge
Allowing for the 90-day total investment horizon Power REIT is expected to generate 4.13 times more return on investment than Urban Edge. However, Power REIT is 4.13 times more volatile than Urban Edge Properties. It trades about 0.08 of its potential returns per unit of risk. Urban Edge Properties is currently generating about 0.19 per unit of risk. If you would invest 114.00 in Power REIT on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Power REIT or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power REIT vs. Urban Edge Properties
Performance |
| Timeline |
| Power REIT |
| Urban Edge Properties |
Power REIT and Urban Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power REIT and Urban Edge
The main advantage of trading using opposite Power REIT and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power REIT position performs unexpectedly, Urban Edge 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 Urban Edge will offset losses from the drop in Urban Edge's long position.| Power REIT vs. Newlake Capital Partners | Power REIT vs. Outfront Media | Power REIT vs. Uniti Group | Power REIT vs. Farmland Partners |
| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |