Correlation Between Cedar Realty and XL Fleet
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and XL Fleet 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 Cedar Realty and XL Fleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cedar Realty Trust and XL Fleet Corp, you can compare the effects of market volatilities on Cedar Realty and XL Fleet 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 Cedar Realty with a short position of XL Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and XL Fleet.
Diversification Opportunities for Cedar Realty and XL Fleet
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cedar and XL Fleet is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and XL Fleet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Fleet Corp and Cedar Realty 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 Cedar Realty Trust are associated (or correlated) with XL Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Fleet Corp has no effect on the direction of Cedar Realty i.e., Cedar Realty and XL Fleet go up and down completely randomly.
Pair Corralation between Cedar Realty and XL Fleet
If you would invest 1,122 in Cedar Realty Trust on September 26, 2024 and sell it today you would earn a total of 281.00 from holding Cedar Realty Trust or generate 25.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 0.2% |
Values | Daily Returns |
Cedar Realty Trust vs. XL Fleet Corp
Performance |
Timeline |
Cedar Realty Trust |
XL Fleet Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cedar Realty and XL Fleet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cedar Realty and XL Fleet
The main advantage of trading using opposite Cedar Realty and XL Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, XL Fleet 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 XL Fleet will offset losses from the drop in XL Fleet's long position.Cedar Realty vs. Kimco Realty | Cedar Realty vs. Saul Centers | Cedar Realty vs. Saul Centers | Cedar Realty vs. Urban Edge Properties |
XL Fleet vs. NuRAN Wireless | XL Fleet vs. Merit Medical Systems | XL Fleet vs. Grocery Outlet Holding | XL Fleet vs. Cedar Realty Trust |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
CEOs Directory Screen CEOs from public companies around the world | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |