Correlation Between Zoomcar Holdings and Cedar Realty

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

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

Diversification Opportunities for Zoomcar Holdings and Cedar Realty

0.02

Correlation Coefficient

Zoomcar Holdings  Cedar Realty

Significant diversification

The 3 months correlation between Zoomcar and Cedar is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zoomcar Holdings 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 Zoomcar Holdings 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 Zoomcar Holdings 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 Zoomcar Holdings i.e., Zoomcar Holdings and Cedar Realty go up and down completely randomly.

Pair Corralation between Zoomcar Holdings and Cedar Realty

Assuming the 90 days horizon Zoomcar Holdings is expected to generate 12.76 times more return on investment than Cedar Realty. However, Zoomcar Holdings is 12.76 times more volatile than Cedar Realty Trust. It trades about 0.13 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.07 per unit of risk. If you would invest  1.19  in Zoomcar Holdings on October 26, 2024 and sell it today you would earn a total of  0.47  from holding Zoomcar Holdings or generate 39.5% return on investment over 90 days.

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

Zoomcar Holdings  vs.  Cedar Realty Trust

Zoomcar Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Zoomcar Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Zoomcar Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Cedar Realty Trust

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cedar Realty sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zoomcar Holdings and Cedar Realty

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

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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.