Correlation Between Urban Edge and Camden Property
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Camden Property 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 Camden Property 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 Camden Property Trust, you can compare the effects of market volatilities on Urban Edge and Camden Property 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 Camden Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Camden Property.
Diversification Opportunities for Urban Edge and Camden Property
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Urban and Camden is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property 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 Camden Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of Urban Edge i.e., Urban Edge and Camden Property go up and down completely randomly.
Pair Corralation between Urban Edge and Camden Property
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.04 times more return on investment than Camden Property. However, Urban Edge is 1.04 times more volatile than Camden Property Trust. It trades about 0.1 of its potential returns per unit of risk. Camden Property Trust is currently generating about 0.04 per unit of risk. If you would invest 1,409 in Urban Edge Properties on August 31, 2024 and sell it today you would earn a total of 892.00 from holding Urban Edge Properties or generate 63.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Camden Property Trust
Performance |
| Timeline |
| Urban Edge Properties |
| Camden Property Trust |
Urban Edge and Camden Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Camden Property
The main advantage of trading using opposite Urban Edge and Camden Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Camden Property 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 Camden Property will offset losses from the drop in Camden Property'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 |
| Camden Property vs. AvalonBay Communities | Camden Property vs. Essex Property Trust | Camden Property vs. Equity Residential | Camden Property vs. UDR Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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