Correlation Between Urban Edge and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and Cedar Realty 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 Cedar Realty Trust, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Cedar Realty.
Diversification Opportunities for Urban Edge and Cedar Realty
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Urban and Cedar is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties 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 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 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 Urban Edge i.e., Urban Edge and Cedar Realty go up and down completely randomly.
Pair Corralation between Urban Edge and Cedar Realty
Allowing for the 90-day total investment horizon Urban Edge is expected to generate 1.08 times less return on investment than Cedar Realty. But when comparing it to its historical volatility, Urban Edge Properties is 1.26 times less risky than Cedar Realty. It trades about 0.07 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Cedar Realty Trust on September 3, 2024 and sell it today you would earn a total of 530.00 from holding Cedar Realty Trust or generate 60.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Cedar Realty Trust
Performance |
| Timeline |
| Urban Edge Properties |
| Cedar Realty Trust |
Urban Edge and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Cedar Realty
The main advantage of trading using opposite Urban Edge and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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