Correlation Between Urban Edge and Mainstay Cbre
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Mainstay Cbre 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 Mainstay Cbre 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 Mainstay Cbre Real, you can compare the effects of market volatilities on Urban Edge and Mainstay Cbre 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 Mainstay Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Mainstay Cbre.
Diversification Opportunities for Urban Edge and Mainstay Cbre
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and Mainstay is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Mainstay Cbre Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cbre Real 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 Mainstay Cbre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cbre Real has no effect on the direction of Urban Edge i.e., Urban Edge and Mainstay Cbre go up and down completely randomly.
Pair Corralation between Urban Edge and Mainstay Cbre
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.17 times more return on investment than Mainstay Cbre. However, Urban Edge is 1.17 times more volatile than Mainstay Cbre Real. It trades about 0.21 of its potential returns per unit of risk. Mainstay Cbre Real is currently generating about 0.11 per unit of risk. If you would invest 2,213 in Urban Edge Properties on August 30, 2024 and sell it today you would earn a total of 118.00 from holding Urban Edge Properties or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Mainstay Cbre Real
Performance |
| Timeline |
| Urban Edge Properties |
| Mainstay Cbre Real |
Urban Edge and Mainstay Cbre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Mainstay Cbre
The main advantage of trading using opposite Urban Edge and Mainstay Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Mainstay Cbre 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 Mainstay Cbre will offset losses from the drop in Mainstay Cbre's long position.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Acadia Realty Trust |
| Mainstay Cbre vs. Massmutual Premier Diversified | Mainstay Cbre vs. Vanguard Strategic Small Cap | Mainstay Cbre vs. Delaware Limited Term Diversified | Mainstay Cbre vs. American Century Diversified |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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