Correlation Between Urban Edge and One Liberty
Can any of the company-specific risk be diversified away by investing in both Urban Edge and One Liberty 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 One Liberty 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 One Liberty Properties, you can compare the effects of market volatilities on Urban Edge and One Liberty 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 One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and One Liberty.
Diversification Opportunities for Urban Edge and One Liberty
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Urban and One is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty 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 One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of Urban Edge i.e., Urban Edge and One Liberty go up and down completely randomly.
Pair Corralation between Urban Edge and One Liberty
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to under-perform the One Liberty. In addition to that, Urban Edge is 1.13 times more volatile than One Liberty Properties. It trades about -0.1 of its total potential returns per unit of risk. One Liberty Properties is currently generating about -0.08 per unit of volatility. If you would invest 2,792 in One Liberty Properties on November 18, 2024 and sell it today you would lose (192.00) from holding One Liberty Properties or give up 6.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. One Liberty Properties
Performance |
| Timeline |
| Urban Edge Properties |
| One Liberty Properties |
Urban Edge and One Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and One Liberty
The main advantage of trading using opposite Urban Edge and One Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, One Liberty 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 One Liberty will offset losses from the drop in One Liberty's long position.| Urban Edge vs. Saul Centers | Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group |
| One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty vs. NexPoint Diversified Real |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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