Correlation Between Cedar Realty and 832696AV0

Can any of the company-specific risk be diversified away by investing in both Cedar Realty and 832696AV0 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 832696AV0 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 SJM 275 15 SEP 41, you can compare the effects of market volatilities on Cedar Realty and 832696AV0 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 832696AV0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and 832696AV0.

Diversification Opportunities for Cedar Realty and 832696AV0

0.46

Correlation Coefficient

Cedar Realty  832696AV0

Very weak diversification

The 3 months correlation between Cedar and 832696AV0 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and SJM 275 15 SEP 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SJM 275 15 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 832696AV0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SJM 275 15 has no effect on the direction of Cedar Realty i.e., Cedar Realty and 832696AV0 go up and down completely randomly.

Pair Corralation between Cedar Realty and 832696AV0

Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 2.43 times more return on investment than 832696AV0. However, Cedar Realty is 2.43 times more volatile than SJM 275 15 SEP 41. It trades about -0.01 of its potential returns per unit of risk. SJM 275 15 SEP 41 is currently generating about -0.15 per unit of risk. If you would invest  1,617  in Cedar Realty Trust on October 10, 2024 and sell it today you would lose (38.00) from holding Cedar Realty Trust or give up 2.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	15.0%
Values	Daily Returns

Cedar Realty Trust  vs.  SJM 275 15 SEP 41

Cedar Realty Trust

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Cedar Realty is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SJM 275 15

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SJM 275 15 SEP 41 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 832696AV0 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cedar Realty and 832696AV0

The main advantage of trading using opposite Cedar Realty and 832696AV0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, 832696AV0 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 832696AV0 will offset losses from the drop in 832696AV0's long position.

The idea behind Cedar Realty Trust and SJM 275 15 SEP 41 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.