Correlation Between Arbor Realty and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Arbor Realty and Urban Edge 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 Arbor Realty and Urban Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Realty Trust and Urban Edge Properties, you can compare the effects of market volatilities on Arbor Realty and Urban Edge 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 Arbor Realty with a short position of Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Realty and Urban Edge.
Diversification Opportunities for Arbor Realty and Urban Edge
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Arbor and Urban is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Realty Trust and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties and Arbor 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 Arbor Realty Trust are associated (or correlated) with Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Arbor Realty i.e., Arbor Realty and Urban Edge go up and down completely randomly.
Pair Corralation between Arbor Realty and Urban Edge
Considering the 90-day investment horizon Arbor Realty Trust is expected to under-perform the Urban Edge. In addition to that, Arbor Realty is 2.15 times more volatile than Urban Edge Properties. It trades about -0.15 of its total potential returns per unit of risk. Urban Edge Properties is currently generating about -0.13 per unit of volatility. If you would invest 2,102 in Urban Edge Properties on September 11, 2025 and sell it today you would lose (198.00) from holding Urban Edge Properties or give up 9.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Realty Trust vs. Urban Edge Properties
Performance |
| Timeline |
| Arbor Realty Trust |
| Urban Edge Properties |
Arbor Realty and Urban Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Realty and Urban Edge
The main advantage of trading using opposite Arbor Realty and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Realty position performs unexpectedly, Urban Edge 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 Urban Edge will offset losses from the drop in Urban Edge's long position.| Arbor Realty vs. Dynex Capital | Arbor Realty vs. Franklin BSP Realty | Arbor Realty vs. ARMOUR Residential REIT | Arbor Realty vs. Agree Realty |
| Urban Edge vs. MFA Financial | Urban Edge vs. Digitalbridge Group | Urban Edge vs. National Storage Affiliates | Urban Edge vs. EPR Properties |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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