Correlation Between Cedar Realty and Blockchain Coinvestors

Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Blockchain Coinvestors 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 Blockchain Coinvestors 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 Blockchain Coinvestors Acquisition, you can compare the effects of market volatilities on Cedar Realty and Blockchain Coinvestors 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 Blockchain Coinvestors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Blockchain Coinvestors.

Diversification Opportunities for Cedar Realty and Blockchain Coinvestors

-0.38

Correlation Coefficient

Cedar Realty  Blockchain Coinvestors

Very good diversification

The 3 months correlation between Cedar and Blockchain is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Blockchain Coinvestors Acquisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Coinvestors 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 Blockchain Coinvestors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Coinvestors has no effect on the direction of Cedar Realty i.e., Cedar Realty and Blockchain Coinvestors go up and down completely randomly.

Pair Corralation between Cedar Realty and Blockchain Coinvestors

Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 3.12 times more return on investment than Blockchain Coinvestors. However, Cedar Realty is 3.12 times more volatile than Blockchain Coinvestors Acquisition. It trades about 0.04 of its potential returns per unit of risk. Blockchain Coinvestors Acquisition is currently generating about 0.02 per unit of risk. If you would invest  1,231  in Cedar Realty Trust on October 25, 2024 and sell it today you would earn a total of  442.00  from holding Cedar Realty Trust or generate 35.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.89%
Values	Daily Returns

Cedar Realty Trust  vs.  Blockchain Coinvestors Acquisi

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 sustained solid returns over the last few months and may actually be approaching a breakup point.

Blockchain Coinvestors

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blockchain Coinvestors Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Blockchain Coinvestors is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cedar Realty and Blockchain Coinvestors

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

The idea behind Cedar Realty Trust and Blockchain Coinvestors Acquisition 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.