Correlation Between CBL Associates and Intergroup

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

By analyzing existing cross correlation between CBL Associates Properties and The Intergroup, you can compare the effects of market volatilities on CBL Associates and Intergroup 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 CBL Associates with a short position of Intergroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Intergroup.

Diversification Opportunities for CBL Associates and Intergroup

-0.6

Correlation Coefficient

CBL Associates  Intergroup

Excellent diversification

The 3 months correlation between CBL and Intergroup is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and CBL Associates 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 CBL Associates Properties are associated (or correlated) with Intergroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intergroup has no effect on the direction of CBL Associates i.e., CBL Associates and Intergroup go up and down completely randomly.

Pair Corralation between CBL Associates and Intergroup

Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.44 times more return on investment than Intergroup. However, CBL Associates Properties is 2.25 times less risky than Intergroup. It trades about 0.24 of its potential returns per unit of risk. The Intergroup is currently generating about -0.12 per unit of risk. If you would invest  2,564  in CBL Associates Properties on August 30, 2024 and sell it today you would earn a total of  561.00  from holding CBL Associates Properties or generate 21.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

CBL Associates Properties  vs.  The Intergroup

CBL Associates Properties

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CBL Associates Properties are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, CBL Associates disclosed solid returns over the last few months and may actually be approaching a breakup point.

Intergroup

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Intergroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CBL Associates and Intergroup

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

The idea behind CBL Associates Properties and The Intergroup 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.