Correlation Between Urban Edge and Choice Properties
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Choice Properties 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 Choice Properties 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 Choice Properties Real, you can compare the effects of market volatilities on Urban Edge and Choice Properties 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 Choice Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Choice Properties.
Diversification Opportunities for Urban Edge and Choice Properties
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and Choice is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Choice Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Properties Real 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 Choice Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Properties Real has no effect on the direction of Urban Edge i.e., Urban Edge and Choice Properties go up and down completely randomly.
Pair Corralation between Urban Edge and Choice Properties
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.85 times more return on investment than Choice Properties. However, Urban Edge Properties is 1.18 times less risky than Choice Properties. It trades about 0.17 of its potential returns per unit of risk. Choice Properties Real is currently generating about -0.14 per unit of risk. If you would invest 2,068 in Urban Edge Properties on August 28, 2024 and sell it today you would earn a total of 245.00 from holding Urban Edge Properties or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Urban Edge Properties vs. Choice Properties Real
Performance |
| Timeline |
| Urban Edge Properties |
| Choice Properties Real |
Urban Edge and Choice Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Choice Properties
The main advantage of trading using opposite Urban Edge and Choice Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Choice Properties 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 Choice Properties will offset losses from the drop in Choice Properties' 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 |
| Choice Properties vs. CT Real Estate | Choice Properties vs. Smart REIT | Choice Properties vs. Slate Grocery REIT | Choice Properties vs. Simon Property Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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