Correlation Between Cedar Realty and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and JBG SMITH 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 JBG SMITH 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 JBG SMITH Properties, you can compare the effects of market volatilities on Cedar Realty and JBG SMITH 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 JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and JBG SMITH.
Diversification Opportunities for Cedar Realty and JBG SMITH
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cedar and JBG is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties 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 JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of Cedar Realty i.e., Cedar Realty and JBG SMITH go up and down completely randomly.
Pair Corralation between Cedar Realty and JBG SMITH
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.28 times more return on investment than JBG SMITH. However, Cedar Realty is 1.28 times more volatile than JBG SMITH Properties. It trades about 0.13 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.05 per unit of risk. If you would invest 1,461 in Cedar Realty Trust on December 28, 2024 and sell it today you would earn a total of 304.00 from holding Cedar Realty Trust or generate 20.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cedar Realty Trust vs. JBG SMITH Properties
Performance |
Timeline |
Cedar Realty Trust |
JBG SMITH Properties |
Cedar Realty and JBG SMITH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cedar Realty and JBG SMITH
The main advantage of trading using opposite Cedar Realty and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH's long position.Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
JBG SMITH vs. Boston Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Alexandria Real Estate | JBG SMITH vs. Vornado Realty Trust |
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.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |