Correlation Between Urban Edge and Jhancock Real
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Jhancock Real 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 Jhancock Real 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 Jhancock Real Estate, you can compare the effects of market volatilities on Urban Edge and Jhancock Real 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 Jhancock Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Jhancock Real.
Diversification Opportunities for Urban Edge and Jhancock Real
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Urban and Jhancock is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Jhancock Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Real Estate 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 Jhancock Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Real Estate has no effect on the direction of Urban Edge i.e., Urban Edge and Jhancock Real go up and down completely randomly.
Pair Corralation between Urban Edge and Jhancock Real
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.16 times more return on investment than Jhancock Real. However, Urban Edge is 1.16 times more volatile than Jhancock Real Estate. It trades about 0.14 of its potential returns per unit of risk. Jhancock Real Estate is currently generating about 0.16 per unit of risk. If you would invest 2,259 in Urban Edge Properties on August 31, 2024 and sell it today you would earn a total of 72.00 from holding Urban Edge Properties or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Jhancock Real Estate
Performance |
| Timeline |
| Urban Edge Properties |
| Jhancock Real Estate |
Urban Edge and Jhancock Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Jhancock Real
The main advantage of trading using opposite Urban Edge and Jhancock Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Jhancock Real 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 Jhancock Real will offset losses from the drop in Jhancock Real'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 |
| Jhancock Real vs. Prudential Government Money | Jhancock Real vs. Blackrock Exchange Portfolio | Jhancock Real vs. Chestnut Street Exchange | Jhancock Real vs. Cref Money Market |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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