Correlation Between Urban Edge and Tuxis

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

Diversification Opportunities for Urban Edge and Tuxis

0.0

Correlation Coefficient

Urban Edge  Tuxis

Pay attention - limited upside

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

Pair Corralation between Urban Edge and Tuxis

If you would invest (100.00) in Tuxis on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Tuxis or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Urban Edge Properties  vs.  Tuxis

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.

Tuxis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tuxis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tuxis is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Urban Edge and Tuxis

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

The idea behind Urban Edge Properties and Tuxis 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.