Correlation Between Cedar Realty and Manaris Corp

Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Manaris Corp 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 Cedar Realty and Manaris Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cedar Realty Trust and Manaris Corp, you can compare the effects of market volatilities on Cedar Realty and Manaris Corp 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 Cedar Realty with a short position of Manaris Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Manaris Corp.

Diversification Opportunities for Cedar Realty and Manaris Corp

0.0

Correlation Coefficient

Cedar Realty  Manaris Corp

Pay attention - limited upside

The 3 months correlation between Cedar and Manaris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Manaris Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaris Corp and Cedar Realty 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 Cedar Realty Trust are associated (or correlated) with Manaris Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaris Corp has no effect on the direction of Cedar Realty i.e., Cedar Realty and Manaris Corp go up and down completely randomly.

Pair Corralation between Cedar Realty and Manaris Corp

Assuming the 90 days trading horizon Cedar Realty is expected to generate 16.51 times less return on investment than Manaris Corp. But when comparing it to its historical volatility, Cedar Realty Trust is 16.02 times less risky than Manaris Corp. It trades about 0.04 of its potential returns per unit of risk. Manaris Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Manaris Corp on September 20, 2024 and sell it today you would earn a total of  0.00  from holding Manaris Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cedar Realty Trust  vs.  Manaris Corp

Cedar Realty Trust

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cedar Realty may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Manaris Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Manaris Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Manaris Corp is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cedar Realty and Manaris Corp

The main advantage of trading using opposite Cedar Realty and Manaris Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Manaris Corp 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 Manaris Corp will offset losses from the drop in Manaris Corp's long position.

The idea behind Cedar Realty Trust and Manaris Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.