Correlation Between Urban Edge and Generationome Properties

Can any of the company-specific risk be diversified away by investing in both Urban Edge and Generationome Properties 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 Generationome Properties 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 Generationome Properties, you can compare the effects of market volatilities on Urban Edge and Generationome Properties 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 Generationome Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Generationome Properties.

Diversification Opportunities for Urban Edge and Generationome Properties

0.73

Correlation Coefficient

Urban Edge  Generationome Properties

Poor diversification

The 3 months correlation between Urban and Generationome is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Generationome Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generationome Properties 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 Generationome Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generationome Properties has no effect on the direction of Urban Edge i.e., Urban Edge and Generationome Properties go up and down completely randomly.

Pair Corralation between Urban Edge and Generationome Properties

Allowing for the 90-day total investment horizon Urban Edge Properties is expected to under-perform the Generationome Properties. But the stock apears to be less risky and, when comparing its historical volatility, Urban Edge Properties is 1.79 times less risky than Generationome Properties. The stock trades about -0.11 of its potential returns per unit of risk. The Generationome Properties is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  180.00  in Generationome Properties on December 30, 2024 and sell it today you would lose (19.00) from holding Generationome Properties or give up 10.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Urban Edge Properties  vs.  Generationome Properties

Urban Edge Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Urban Edge Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Generationome Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Generationome Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Urban Edge and Generationome Properties

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

The idea behind Urban Edge Properties and Generationome Properties 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.