Correlation Between Urban Edge and EPR Properties
Can any of the company-specific risk be diversified away by investing in both Urban Edge and EPR 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 EPR 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 EPR Properties, you can compare the effects of market volatilities on Urban Edge and EPR 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 EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and EPR Properties.
Diversification Opportunities for Urban Edge and EPR Properties
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and EPR is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and EPR Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR 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 EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties has no effect on the direction of Urban Edge i.e., Urban Edge and EPR Properties go up and down completely randomly.
Pair Corralation between Urban Edge and EPR Properties
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.88 times more return on investment than EPR Properties. However, Urban Edge Properties is 1.14 times less risky than EPR Properties. It trades about 0.15 of its potential returns per unit of risk. EPR Properties is currently generating about -0.08 per unit of risk. If you would invest 2,216 in Urban Edge Properties on August 27, 2024 and sell it today you would earn a total of 79.00 from holding Urban Edge Properties or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. EPR Properties
Performance |
| Timeline |
| Urban Edge Properties |
| EPR Properties |
Urban Edge and EPR Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and EPR Properties
The main advantage of trading using opposite Urban Edge and EPR Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, EPR 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 EPR Properties will offset losses from the drop in EPR 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 |
| EPR Properties vs. Broadstone Net Lease | EPR Properties vs. Armada Hflr Pr | EPR Properties vs. Brightspire Capital | EPR Properties vs. Safehold |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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