Correlation Between Cedar Realty and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Cohen Steers 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 Cohen Steers 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 Cohen Steers Real, you can compare the effects of market volatilities on Cedar Realty and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Cohen Steers.
Diversification Opportunities for Cedar Realty and Cohen Steers
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cedar and Cohen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Cedar Realty i.e., Cedar Realty and Cohen Steers go up and down completely randomly.
Pair Corralation between Cedar Realty and Cohen Steers
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.65 times more return on investment than Cohen Steers. However, Cedar Realty is 1.65 times more volatile than Cohen Steers Real. It trades about 0.09 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.06 per unit of risk. If you would invest 1,385 in Cedar Realty Trust on December 28, 2024 and sell it today you would earn a total of 122.00 from holding Cedar Realty Trust or generate 8.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cedar Realty Trust vs. Cohen Steers Real
Performance |
Timeline |
Cedar Realty Trust |
Cohen Steers Real |
Cedar Realty and Cohen Steers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cedar Realty and Cohen Steers
The main advantage of trading using opposite Cedar Realty and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. CBL Associates Properties | Cedar Realty vs. Saul Centers | Cedar Realty vs. Federal Realty Investment |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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