Correlation Between Urban Edge and Four Corners
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Four Corners 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 Four Corners 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 Four Corners Property, you can compare the effects of market volatilities on Urban Edge and Four Corners 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 Four Corners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Four Corners.
Diversification Opportunities for Urban Edge and Four Corners
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Urban and Four is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Four Corners Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Corners Property 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 Four Corners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Corners Property has no effect on the direction of Urban Edge i.e., Urban Edge and Four Corners go up and down completely randomly.
Pair Corralation between Urban Edge and Four Corners
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.39 times more return on investment than Four Corners. However, Urban Edge is 1.39 times more volatile than Four Corners Property. It trades about 0.2 of its potential returns per unit of risk. Four Corners Property is currently generating about 0.19 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Four Corners Property
Performance |
| Timeline |
| Urban Edge Properties |
| Four Corners Property |
Urban Edge and Four Corners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Four Corners
The main advantage of trading using opposite Urban Edge and Four Corners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Four Corners 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 Four Corners will offset losses from the drop in Four Corners' long position.| Urban Edge vs. Site Centers Corp | Urban Edge vs. Inventrust Properties Corp | Urban Edge vs. Retail Opportunity Investments | Urban Edge vs. Netstreit Corp |
| Four Corners vs. Broadstone Net Lease | Four Corners vs. Armada Hflr Pr | Four Corners vs. Brightspire Capital | Four Corners 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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