Correlation Between CBL Associates and Federal Realty
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Federal 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 CBL Associates and Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Federal Realty Investment, you can compare the effects of market volatilities on CBL Associates and Federal 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 CBL Associates with a short position of Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Federal Realty.
Diversification Opportunities for CBL Associates and Federal Realty
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBL and Federal is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment and CBL Associates 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 CBL Associates Properties are associated (or correlated) with Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of CBL Associates i.e., CBL Associates and Federal Realty go up and down completely randomly.
Pair Corralation between CBL Associates and Federal Realty
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.99 times more return on investment than Federal Realty. However, CBL Associates Properties is 1.01 times less risky than Federal Realty. It trades about 0.06 of its potential returns per unit of risk. Federal Realty Investment is currently generating about -0.08 per unit of risk. If you would invest 3,061 in CBL Associates Properties on December 2, 2024 and sell it today you would earn a total of 57.00 from holding CBL Associates Properties or generate 1.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CBL Associates Properties vs. Federal Realty Investment
Performance |
Timeline |
CBL Associates Properties |
Federal Realty Investment |
CBL Associates and Federal Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CBL Associates and Federal Realty
The main advantage of trading using opposite CBL Associates and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Federal 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 Federal Realty will offset losses from the drop in Federal Realty's long position.CBL Associates vs. Kite Realty Group | CBL Associates vs. Site Centers Corp | CBL Associates vs. Urban Edge Properties | CBL Associates vs. Acadia Realty Trust |
Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco Realty |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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