Correlation Between Here Media and Cedar Realty

Can any of the company-specific risk be diversified away by investing in both Here Media and Cedar Realty 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 Here Media and Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Here Media and Cedar Realty Trust, you can compare the effects of market volatilities on Here Media and Cedar Realty 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 Here Media with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Here Media and Cedar Realty.

Diversification Opportunities for Here Media and Cedar Realty

0.0

Correlation Coefficient

Here Media  Cedar Realty

Pay attention - limited upside

The 3 months correlation between Here and Cedar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Here Media and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust and Here Media 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 Here Media are associated (or correlated) with Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Here Media i.e., Here Media and Cedar Realty go up and down completely randomly.

Pair Corralation between Here Media and Cedar Realty

If you would invest  1,442  in Cedar Realty Trust on December 25, 2024 and sell it today you would earn a total of  323.00  from holding Cedar Realty Trust or generate 22.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Here Media  vs.  Cedar Realty Trust

Here Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Here Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, Here Media is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Cedar Realty Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 10 (%) 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.

Pair Trading with Here Media and Cedar Realty

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

The idea behind Here Media and Cedar Realty Trust 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.