Correlation Between Urban Edge and Cousins Properties
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Cousins Properties 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 Cousins Properties 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 Cousins Properties Incorporated, you can compare the effects of market volatilities on Urban Edge and Cousins Properties 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 Cousins Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Cousins Properties.
Diversification Opportunities for Urban Edge and Cousins Properties
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Urban and Cousins is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Cousins Properties Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cousins Properties 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 Cousins Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cousins Properties has no effect on the direction of Urban Edge i.e., Urban Edge and Cousins Properties go up and down completely randomly.
Pair Corralation between Urban Edge and Cousins Properties
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.97 times more return on investment than Cousins Properties. However, Urban Edge Properties is 1.03 times less risky than Cousins Properties. It trades about 0.2 of its potential returns per unit of risk. Cousins Properties Incorporated is currently generating about 0.03 per unit of risk. If you would invest 2,181 in Urban Edge Properties on August 26, 2024 and sell it today you would earn a total of 114.00 from holding Urban Edge Properties or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Cousins Properties Incorporate
Performance |
| Timeline |
| Urban Edge Properties |
| Cousins Properties |
Urban Edge and Cousins Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Cousins Properties
The main advantage of trading using opposite Urban Edge and Cousins Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Cousins Properties 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 Cousins Properties will offset losses from the drop in Cousins Properties' 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 |
| Cousins Properties vs. Highwoods Properties | Cousins Properties vs. Douglas Emmett | Cousins Properties vs. Equity Commonwealth | Cousins Properties vs. Kilroy Realty Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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