Correlation Between Rithm Property and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Rithm Property 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 Rithm Property and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Property Trust and Cedar Realty Trust, you can compare the effects of market volatilities on Rithm Property 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 Rithm Property with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Cedar Realty.
Diversification Opportunities for Rithm Property and Cedar Realty
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rithm and Cedar is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust 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 Rithm Property 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 Rithm Property Trust 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 Rithm Property i.e., Rithm Property and Cedar Realty go up and down completely randomly.
Pair Corralation between Rithm Property and Cedar Realty
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Cedar Realty. But the stock apears to be less risky and, when comparing its historical volatility, Rithm Property Trust is 2.13 times less risky than Cedar Realty. The stock trades about -0.13 of its potential returns per unit of risk. The Cedar Realty Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,570 in Cedar Realty Trust on September 14, 2024 and sell it today you would earn a total of 103.00 from holding Cedar Realty Trust or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Property Trust vs. Cedar Realty Trust
Performance |
| Timeline |
| Rithm Property Trust |
| Cedar Realty Trust |
Rithm Property and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Property and Cedar Realty
The main advantage of trading using opposite Rithm Property and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property 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.| Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties Corp |
| Cedar Realty vs. Simon Property Group | Cedar Realty vs. Saul Centers | Cedar Realty vs. Rithm Property Trust | Cedar Realty vs. Urban Edge Properties |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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