Correlation Between Regency Centers and Urstadt Biddle
Can any of the company-specific risk be diversified away by investing in both Regency Centers and Urstadt Biddle 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 Regency Centers and Urstadt Biddle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and Urstadt Biddle, you can compare the effects of market volatilities on Regency Centers and Urstadt Biddle 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 Regency Centers with a short position of Urstadt Biddle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Urstadt Biddle.
Diversification Opportunities for Regency Centers and Urstadt Biddle
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Regency and Urstadt is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers and Urstadt Biddle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urstadt Biddle and Regency Centers 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 Regency Centers are associated (or correlated) with Urstadt Biddle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urstadt Biddle has no effect on the direction of Regency Centers i.e., Regency Centers and Urstadt Biddle go up and down completely randomly.
Pair Corralation between Regency Centers and Urstadt Biddle
Considering the 90-day investment horizon Regency Centers is expected to generate 4.59 times less return on investment than Urstadt Biddle. In addition to that, Regency Centers is 1.03 times more volatile than Urstadt Biddle. It trades about 0.08 of its total potential returns per unit of risk. Urstadt Biddle is currently generating about 0.36 per unit of volatility. If you would invest 1,952 in Urstadt Biddle on August 27, 2024 and sell it today you would earn a total of 298.00 from holding Urstadt Biddle or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 9.38% |
| Values | Daily Returns |
Regency Centers vs. Urstadt Biddle
Performance |
| Timeline |
| Regency Centers |
| Urstadt Biddle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regency Centers and Urstadt Biddle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regency Centers and Urstadt Biddle
The main advantage of trading using opposite Regency Centers and Urstadt Biddle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers position performs unexpectedly, Urstadt Biddle 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 Urstadt Biddle will offset losses from the drop in Urstadt Biddle's long position.| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Getty Realty | Regency Centers vs. Site Centers Corp |
| Urstadt Biddle vs. Regency Centers | Urstadt Biddle vs. Saul Centers | Urstadt Biddle vs. Retail Opportunity Investments | Urstadt Biddle vs. Acadia Realty Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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