Correlation Between Regency Centers and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Regency Centers 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 Regency Centers and Urban Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and Urban Edge Properties, you can compare the effects of market volatilities on Regency Centers 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 Regency Centers with a short position of Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Urban Edge.
Diversification Opportunities for Regency Centers and Urban Edge
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regency and Urban is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers 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 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 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 Regency Centers i.e., Regency Centers and Urban Edge go up and down completely randomly.
Pair Corralation between Regency Centers and Urban Edge
Considering the 90-day investment horizon Regency Centers is expected to generate 0.74 times more return on investment than Urban Edge. However, Regency Centers is 1.34 times less risky than Urban Edge. It trades about 0.05 of its potential returns per unit of risk. Urban Edge Properties is currently generating about -0.03 per unit of risk. If you would invest 7,108 in Regency Centers on November 5, 2024 and sell it today you would earn a total of 76.00 from holding Regency Centers or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regency Centers vs. Urban Edge Properties
Performance |
| Timeline |
| Regency Centers |
| Urban Edge Properties |
Regency Centers and Urban Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regency Centers and Urban Edge
The main advantage of trading using opposite Regency Centers and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers 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.| Regency Centers vs. Saul Centers | Regency Centers vs. Retail Opportunity Investments | Regency Centers vs. Rithm Property Trust | Regency Centers vs. Getty Realty |
| Urban Edge vs. Saul Centers | Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |