Correlation Between Urban Edge and Gaucho Group
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Gaucho Group 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 Gaucho Group 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 Gaucho Group Holdings, you can compare the effects of market volatilities on Urban Edge and Gaucho Group 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 Gaucho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Gaucho Group.
Diversification Opportunities for Urban Edge and Gaucho Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and Gaucho is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Gaucho Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaucho Group Holdings 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 Gaucho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaucho Group Holdings has no effect on the direction of Urban Edge i.e., Urban Edge and Gaucho Group go up and down completely randomly.
Pair Corralation between Urban Edge and Gaucho Group
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.09 times more return on investment than Gaucho Group. However, Urban Edge Properties is 10.84 times less risky than Gaucho Group. It trades about 0.07 of its potential returns per unit of risk. Gaucho Group Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,369 in Urban Edge Properties on August 27, 2024 and sell it today you would earn a total of 926.00 from holding Urban Edge Properties or generate 67.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Gaucho Group Holdings
Performance |
| Timeline |
| Urban Edge Properties |
| Gaucho Group Holdings |
Urban Edge and Gaucho Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Gaucho Group
The main advantage of trading using opposite Urban Edge and Gaucho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Gaucho Group 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 Gaucho Group will offset losses from the drop in Gaucho Group'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 |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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