Correlation Between Xiabuxiabu Catering and Cedar Realty

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

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

Diversification Opportunities for Xiabuxiabu Catering and Cedar Realty

-0.41

Correlation Coefficient

Xiabuxiabu Catering  Cedar Realty

Very good diversification

The 3 months correlation between Xiabuxiabu and Cedar is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management 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 Xiabuxiabu Catering 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 Xiabuxiabu Catering Management 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 Xiabuxiabu Catering i.e., Xiabuxiabu Catering and Cedar Realty go up and down completely randomly.

Pair Corralation between Xiabuxiabu Catering and Cedar Realty

If you would invest  1,630  in Cedar Realty Trust on September 19, 2024 and sell it today you would earn a total of  40.00  from holding Cedar Realty Trust or generate 2.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Xiabuxiabu Catering Management  vs.  Cedar Realty Trust

Xiabuxiabu Catering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Cedar Realty Trust

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat sluggish basic indicators, Cedar Realty sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xiabuxiabu Catering and Cedar Realty

The main advantage of trading using opposite Xiabuxiabu Catering and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiabuxiabu Catering 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 Xiabuxiabu Catering Management 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.