Correlation Between SOUTHERN and Cedar Realty
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By analyzing existing cross correlation between SOUTHERN CALIFORNIA EDISON and Cedar Realty Trust, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Cedar Realty.
Diversification Opportunities for SOUTHERN and Cedar Realty
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOUTHERN and Cedar is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIFORNIA EDISON 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 SOUTHERN 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 SOUTHERN CALIFORNIA EDISON 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 SOUTHERN i.e., SOUTHERN and Cedar Realty go up and down completely randomly.
Pair Corralation between SOUTHERN and Cedar Realty
Assuming the 90 days trading horizon SOUTHERN CALIFORNIA EDISON is expected to generate 0.5 times more return on investment than Cedar Realty. However, SOUTHERN CALIFORNIA EDISON is 2.0 times less risky than Cedar Realty. It trades about 0.13 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.02 per unit of risk. If you would invest 7,490 in SOUTHERN CALIFORNIA EDISON on September 5, 2024 and sell it today you would earn a total of 150.00 from holding SOUTHERN CALIFORNIA EDISON or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
SOUTHERN CALIFORNIA EDISON vs. Cedar Realty Trust
Performance |
| Timeline |
| SOUTHERN CALIFORNIA |
| Cedar Realty Trust |
SOUTHERN and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Cedar Realty
The main advantage of trading using opposite SOUTHERN and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. High Performance Beverages | SOUTHERN vs. Levi Strauss Co | SOUTHERN vs. Oatly Group AB | SOUTHERN vs. National Beverage Corp |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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