Correlation Between Urban Edge and Broadstone Net
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Broadstone Net 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 Broadstone Net 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 Broadstone Net Lease, you can compare the effects of market volatilities on Urban Edge and Broadstone Net 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 Broadstone Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Broadstone Net.
Diversification Opportunities for Urban Edge and Broadstone Net
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and Broadstone is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Broadstone Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadstone Net Lease 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 Broadstone Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadstone Net Lease has no effect on the direction of Urban Edge i.e., Urban Edge and Broadstone Net go up and down completely randomly.
Pair Corralation between Urban Edge and Broadstone Net
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.22 times more return on investment than Broadstone Net. However, Urban Edge is 1.22 times more volatile than Broadstone Net Lease. It trades about 0.05 of its potential returns per unit of risk. Broadstone Net Lease is currently generating about -0.08 per unit of risk. If you would invest 2,236 in Urban Edge Properties on September 4, 2024 and sell it today you would earn a total of 25.00 from holding Urban Edge Properties or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Broadstone Net Lease
Performance |
| Timeline |
| Urban Edge Properties |
| Broadstone Net Lease |
Urban Edge and Broadstone Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Broadstone Net
The main advantage of trading using opposite Urban Edge and Broadstone Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Broadstone Net 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 Broadstone Net will offset losses from the drop in Broadstone Net'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 |
| Broadstone Net vs. Boston Properties | Broadstone Net vs. Douglas Emmett | Broadstone Net vs. Alexandria Real Estate | Broadstone Net vs. Vornado Realty 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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