Correlation Between Urstadt Biddle and Plaza Retail

Can any of the company-specific risk be diversified away by investing in both Urstadt Biddle and Plaza Retail 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 Urstadt Biddle and Plaza Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Urstadt Biddle Properties and Plaza Retail REIT, you can compare the effects of market volatilities on Urstadt Biddle and Plaza Retail 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 Urstadt Biddle with a short position of Plaza Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urstadt Biddle and Plaza Retail.

Diversification Opportunities for Urstadt Biddle and Plaza Retail

-0.79

Correlation Coefficient

Urstadt Biddle  Plaza Retail

Pay attention - limited upside

The 3 months correlation between Urstadt and Plaza is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Urstadt Biddle Properties and Plaza Retail REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Retail REIT and Urstadt Biddle 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 Urstadt Biddle Properties are associated (or correlated) with Plaza Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Retail REIT has no effect on the direction of Urstadt Biddle i.e., Urstadt Biddle and Plaza Retail go up and down completely randomly.

Pair Corralation between Urstadt Biddle and Plaza Retail

If you would invest  2,274  in Urstadt Biddle Properties on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Urstadt Biddle Properties or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Urstadt Biddle Properties  vs.  Plaza Retail REIT

Urstadt Biddle Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urstadt Biddle Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Urstadt Biddle is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Plaza Retail REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plaza Retail REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Urstadt Biddle and Plaza Retail

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

The idea behind Urstadt Biddle Properties and Plaza Retail REIT 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.