Correlation Between Cedar Realty and Freeport

Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Freeport 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 Freeport 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 Freeport McMoRan 545 percent, you can compare the effects of market volatilities on Cedar Realty and Freeport 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 Freeport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Freeport.

Diversification Opportunities for Cedar Realty and Freeport

-0.47

Correlation Coefficient

Cedar Realty  Freeport

Very good diversification

The 3 months correlation between Cedar and Freeport is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Freeport McMoRan 545 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeport McMoRan 545 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 Freeport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeport McMoRan 545 has no effect on the direction of Cedar Realty i.e., Cedar Realty and Freeport go up and down completely randomly.

Pair Corralation between Cedar Realty and Freeport

Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 2.15 times more return on investment than Freeport. However, Cedar Realty is 2.15 times more volatile than Freeport McMoRan 545 percent. It trades about 0.04 of its potential returns per unit of risk. Freeport McMoRan 545 percent is currently generating about 0.01 per unit of risk. If you would invest  1,147  in Cedar Realty Trust on September 20, 2024 and sell it today you would earn a total of  405.00  from holding Cedar Realty Trust or generate 35.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Cedar Realty Trust  vs.  Freeport McMoRan 545 percent

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.

Freeport McMoRan 545

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Freeport McMoRan 545 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Freeport McMoRan 545 percent investors.

Pair Trading with Cedar Realty and Freeport

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

The idea behind Cedar Realty Trust and Freeport McMoRan 545 percent 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 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.