Correlation Between Urban Edge and Uniti
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Uniti 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 Uniti 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 Uniti Group, you can compare the effects of market volatilities on Urban Edge and Uniti 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 Uniti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Uniti.
Diversification Opportunities for Urban Edge and Uniti
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Urban and Uniti is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Uniti Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniti Group 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 Uniti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniti Group has no effect on the direction of Urban Edge i.e., Urban Edge and Uniti go up and down completely randomly.
Pair Corralation between Urban Edge and Uniti
Allowing for the 90-day total investment horizon Urban Edge is expected to generate 3.0 times less return on investment than Uniti. But when comparing it to its historical volatility, Urban Edge Properties is 3.25 times less risky than Uniti. It trades about 0.17 of its potential returns per unit of risk. Uniti Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 435.00 in Uniti Group on September 2, 2024 and sell it today you would earn a total of 156.00 from holding Uniti Group or generate 35.86% 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. Uniti Group
Performance |
| Timeline |
| Urban Edge Properties |
| Uniti Group |
Urban Edge and Uniti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Uniti
The main advantage of trading using opposite Urban Edge and Uniti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Uniti 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 Uniti will offset losses from the drop in Uniti's long position.| Urban Edge vs. Federal Realty Investment | Urban Edge vs. National Retail Properties | Urban Edge vs. Kimco Realty |
| Uniti vs. Digital Realty Trust | Uniti vs. Iron Mountain Incorporated | Uniti vs. Gaming Leisure Properties | Uniti vs. Crown Castle |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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