Correlation Between Umpqua Holdings and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Umpqua Holdings and Cedar Realty 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 Umpqua Holdings and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Umpqua Holdings and Cedar Realty Trust, you can compare the effects of market volatilities on Umpqua Holdings and Cedar Realty 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 Umpqua Holdings with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Umpqua Holdings and Cedar Realty.
Diversification Opportunities for Umpqua Holdings and Cedar Realty
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Umpqua and Cedar is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Umpqua Holdings and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust and Umpqua Holdings 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 Umpqua Holdings are associated (or correlated) with Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Umpqua Holdings i.e., Umpqua Holdings and Cedar Realty go up and down completely randomly.
Pair Corralation between Umpqua Holdings and Cedar Realty
If you would invest 1,552 in Cedar Realty Trust on October 20, 2024 and sell it today you would earn a total of 33.00 from holding Cedar Realty Trust or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Umpqua Holdings vs. Cedar Realty Trust
Performance |
| Timeline |
| Umpqua Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cedar Realty Trust |
Umpqua Holdings and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Umpqua Holdings and Cedar Realty
The main advantage of trading using opposite Umpqua Holdings and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Umpqua Holdings position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Umpqua Holdings vs. Cedar Realty Trust | Umpqua Holdings vs. Small Cap Premium | Umpqua Holdings vs. Freedom Holding Corp | Umpqua Holdings vs. Black Spade Acquisition |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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