Correlation Between Zedge and Cedar Realty

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Can any of the company-specific risk be diversified away by investing in both Zedge 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 Zedge and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedge Inc and Cedar Realty Trust, you can compare the effects of market volatilities on Zedge 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 Zedge with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedge and Cedar Realty.

Diversification Opportunities for Zedge and Cedar Realty

-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between Zedge and Cedar is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Zedge Inc 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 Zedge 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 Zedge Inc 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 Zedge i.e., Zedge and Cedar Realty go up and down completely randomly.

Pair Corralation between Zedge and Cedar Realty

Given the investment horizon of 90 days Zedge Inc is expected to generate 1.18 times more return on investment than Cedar Realty. However, Zedge is 1.18 times more volatile than Cedar Realty Trust. It trades about -0.07 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about -0.1 per unit of risk. If you would invest  281.00  in Zedge Inc on September 12, 2024 and sell it today you would lose (13.00) from holding Zedge Inc or give up 4.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Zedge Inc  vs.  Cedar Realty Trust

 Performance 
       Timeline  
Zedge Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Zedge Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Cedar Realty Trust 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cedar Realty sustained solid returns over the last few months and may actually be approaching a breakup point.

Zedge and Cedar Realty Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Zedge and Cedar Realty

The main advantage of trading using opposite Zedge and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedge 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.
The idea behind Zedge Inc and Cedar Realty Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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