Correlation Between Urban Edge and Plaza Retail
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Plaza Retail 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 Plaza Retail 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 Plaza Retail REIT, you can compare the effects of market volatilities on Urban Edge and Plaza Retail 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 Plaza Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Plaza Retail.
Diversification Opportunities for Urban Edge and Plaza Retail
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Urban and Plaza is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Plaza Retail REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Retail REIT 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 Plaza Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Retail REIT has no effect on the direction of Urban Edge i.e., Urban Edge and Plaza Retail go up and down completely randomly.
Pair Corralation between Urban Edge and Plaza Retail
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.22 times more return on investment than Plaza Retail. However, Urban Edge is 1.22 times more volatile than Plaza Retail REIT. It trades about 0.2 of its potential returns per unit of risk. Plaza Retail REIT is currently generating about -0.07 per unit of risk. If you would invest 2,061 in Urban Edge Properties on August 31, 2024 and sell it today you would earn a total of 270.00 from holding Urban Edge Properties or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Plaza Retail REIT
Performance |
| Timeline |
| Urban Edge Properties |
| Plaza Retail REIT |
Urban Edge and Plaza Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Plaza Retail
The main advantage of trading using opposite Urban Edge and Plaza Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Plaza Retail 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 Plaza Retail will offset losses from the drop in Plaza Retail'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 |
| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery REIT |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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