Correlation Between Urban Edge and CKX Lands
Can any of the company-specific risk be diversified away by investing in both Urban Edge and CKX Lands 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 CKX Lands 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 CKX Lands, you can compare the effects of market volatilities on Urban Edge and CKX Lands 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 CKX Lands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and CKX Lands.
Diversification Opportunities for Urban Edge and CKX Lands
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Urban and CKX is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and CKX Lands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKX Lands 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 CKX Lands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKX Lands has no effect on the direction of Urban Edge i.e., Urban Edge and CKX Lands go up and down completely randomly.
Pair Corralation between Urban Edge and CKX Lands
Allowing for the 90-day total investment horizon Urban Edge is expected to generate 29.84 times less return on investment than CKX Lands. But when comparing it to its historical volatility, Urban Edge Properties is 76.58 times less risky than CKX Lands. It trades about 0.21 of its potential returns per unit of risk. CKX Lands is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,383 in CKX Lands on August 24, 2024 and sell it today you would lose (132.00) from holding CKX Lands or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.2% |
| Values | Daily Returns |
Urban Edge Properties vs. CKX Lands
Performance |
| Timeline |
| Urban Edge Properties |
| CKX Lands |
Urban Edge and CKX Lands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and CKX Lands
The main advantage of trading using opposite Urban Edge and CKX Lands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, CKX Lands 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 CKX Lands will offset losses from the drop in CKX Lands' long position.| Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments | Urban Edge vs. Inventrust Properties Corp |
| CKX Lands vs. PrimeEnergy | CKX Lands vs. MorningStar Partners, LP | CKX Lands vs. XXL Energy Corp | CKX Lands vs. Magnolia Oil Gas |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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