Correlation Between Urban Edge and Apple Hospitality
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Apple Hospitality 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 Urban Edge and Apple Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Apple Hospitality REIT, you can compare the effects of market volatilities on Urban Edge and Apple Hospitality 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 Urban Edge with a short position of Apple Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Apple Hospitality.
Diversification Opportunities for Urban Edge and Apple Hospitality
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Urban and Apple is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Apple Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Hospitality REIT and Urban Edge 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 Urban Edge Properties are associated (or correlated) with Apple Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Hospitality REIT has no effect on the direction of Urban Edge i.e., Urban Edge and Apple Hospitality go up and down completely randomly.
Pair Corralation between Urban Edge and Apple Hospitality
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.04 times more return on investment than Apple Hospitality. However, Urban Edge is 1.04 times more volatile than Apple Hospitality REIT. It trades about 0.07 of its potential returns per unit of risk. Apple Hospitality REIT is currently generating about 0.02 per unit of risk. If you would invest 1,369 in Urban Edge Properties on August 27, 2024 and sell it today you would earn a total of 926.00 from holding Urban Edge Properties or generate 67.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Apple Hospitality REIT
Performance |
| Timeline |
| Urban Edge Properties |
| Apple Hospitality REIT |
Urban Edge and Apple Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Apple Hospitality
The main advantage of trading using opposite Urban Edge and Apple Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Apple Hospitality 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 Apple Hospitality will offset losses from the drop in Apple Hospitality's long position.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| Apple Hospitality vs. Park Hotels Resorts | Apple Hospitality vs. Diamondrock Hospitality | Apple Hospitality vs. Ryman Hospitality Properties | Apple Hospitality vs. Pebblebrook Hotel 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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