Correlation Between Urban Edge and Gladstone Land
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Gladstone Land 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 Gladstone Land 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 Gladstone Land, you can compare the effects of market volatilities on Urban Edge and Gladstone Land 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 Gladstone Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Gladstone Land.
Diversification Opportunities for Urban Edge and Gladstone Land
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Urban and Gladstone is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Gladstone Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Land 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 Gladstone Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Land has no effect on the direction of Urban Edge i.e., Urban Edge and Gladstone Land go up and down completely randomly.
Pair Corralation between Urban Edge and Gladstone Land
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.7 times more return on investment than Gladstone Land. However, Urban Edge Properties is 1.42 times less risky than Gladstone Land. It trades about 0.14 of its potential returns per unit of risk. Gladstone Land is currently generating about -0.28 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 Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Urban Edge Properties vs. Gladstone Land
Performance |
| Timeline |
| Urban Edge Properties |
| Gladstone Land |
Urban Edge and Gladstone Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Gladstone Land
The main advantage of trading using opposite Urban Edge and Gladstone Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Gladstone Land 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 Gladstone Land will offset losses from the drop in Gladstone Land'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 |
| Gladstone Land vs. Farmland Partners | Gladstone Land vs. STAG Industrial | Gladstone Land vs. Gladstone Commercial | Gladstone Land vs. LTC Properties |
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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