Correlation Between Simon Property and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Simon 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 Simon 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 Simon Property Group and Cedar Realty Trust, you can compare the effects of market volatilities on Simon 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 Simon Property with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Cedar Realty.
Diversification Opportunities for Simon Property and Cedar Realty
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and Cedar is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property 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 Simon 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 Simon Property 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 Simon Property i.e., Simon Property and Cedar Realty go up and down completely randomly.
Pair Corralation between Simon Property and Cedar Realty
Assuming the 90 days trading horizon Simon Property is expected to generate 116.65 times less return on investment than Cedar Realty. But when comparing it to its historical volatility, Simon Property Group is 1.71 times less risky than Cedar Realty. It trades about 0.0 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,377 in Cedar Realty Trust on October 20, 2024 and sell it today you would earn a total of 97.00 from holding Cedar Realty Trust or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Cedar Realty Trust
Performance |
| Timeline |
| Simon Property Group |
| Cedar Realty Trust |
Simon Property and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Cedar Realty
The main advantage of trading using opposite Simon Property and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon 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.| Simon Property vs. Wheeler Real Estate | Simon Property vs. CBL Associates Properties | Simon Property vs. Saul Centers | Simon Property vs. Federal Realty Investment |
| Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. CBL Associates Properties | Cedar Realty vs. Saul Centers | Cedar Realty vs. Federal Realty Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |