Correlation Between SBC Medical and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both SBC Medical 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 SBC Medical and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBC Medical Group and Cedar Realty Trust, you can compare the effects of market volatilities on SBC Medical 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 SBC Medical with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBC Medical and Cedar Realty.
Diversification Opportunities for SBC Medical and Cedar Realty
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SBC and Cedar is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SBC Medical Group 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 SBC Medical 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 SBC Medical Group 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 SBC Medical i.e., SBC Medical and Cedar Realty go up and down completely randomly.
Pair Corralation between SBC Medical and Cedar Realty
Assuming the 90 days horizon SBC Medical Group is expected to generate 4.14 times more return on investment than Cedar Realty. However, SBC Medical is 4.14 times more volatile than Cedar Realty Trust. It trades about 0.18 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.04 per unit of risk. If you would invest 7.31 in SBC Medical Group on October 25, 2024 and sell it today you would earn a total of 18.69 from holding SBC Medical Group or generate 255.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 17.44% |
| Values | Daily Returns |
SBC Medical Group vs. Cedar Realty Trust
Performance |
| Timeline |
| SBC Medical Group |
| Cedar Realty Trust |
SBC Medical and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBC Medical and Cedar Realty
The main advantage of trading using opposite SBC Medical and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBC Medical 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.| SBC Medical vs. 1 800 FLOWERSCOM | SBC Medical vs. Space Communication | SBC Medical vs. Asbury Automotive Group | SBC Medical vs. Reservoir Media |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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