Correlation Between Urban Edge and Federal Realty
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Federal 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 Urban Edge and Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Federal Realty Investment, you can compare the effects of market volatilities on Urban Edge and Federal 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 Urban Edge with a short position of Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Federal Realty.
Diversification Opportunities for Urban Edge and Federal Realty
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Urban and Federal is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment and Urban Edge 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 Urban Edge Properties are associated (or correlated) with Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of Urban Edge i.e., Urban Edge and Federal Realty go up and down completely randomly.
Pair Corralation between Urban Edge and Federal Realty
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 1.61 times more return on investment than Federal Realty. However, Urban Edge is 1.61 times more volatile than Federal Realty Investment. It trades about 0.08 of its potential returns per unit of risk. Federal Realty Investment is currently generating about 0.0 per unit of risk. If you would invest 1,792 in Urban Edge Properties on September 14, 2024 and sell it today you would earn a total of 441.00 from holding Urban Edge Properties or generate 24.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Urban Edge Properties vs. Federal Realty Investment
Performance |
Timeline |
Urban Edge Properties |
Federal Realty Investment |
Urban Edge and Federal Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Urban Edge and Federal Realty
The main advantage of trading using opposite Urban Edge and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Federal 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 Federal Realty will offset losses from the drop in Federal Realty's long position.Urban Edge vs. Saul Centers | Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group |
Federal Realty vs. Simon Property Group | Federal Realty vs. Saul Centers | Federal Realty vs. Rithm Property Trust | Federal Realty vs. Urban Edge Properties |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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