Correlation Between Cedar Realty and Brookfield Property
Can any of the company-specific risk be diversified away by investing in both Cedar Realty and Brookfield Property 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 Brookfield Property 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 Brookfield Property Partners, you can compare the effects of market volatilities on Cedar Realty and Brookfield Property 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 Brookfield Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Brookfield Property.
Diversification Opportunities for Cedar Realty and Brookfield Property
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cedar and Brookfield is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Brookfield Property Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Property 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 Brookfield Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Property has no effect on the direction of Cedar Realty i.e., Cedar Realty and Brookfield Property go up and down completely randomly.
Pair Corralation between Cedar Realty and Brookfield Property
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.25 times more return on investment than Brookfield Property. However, Cedar Realty is 1.25 times more volatile than Brookfield Property Partners. It trades about 0.05 of its potential returns per unit of risk. Brookfield Property Partners is currently generating about 0.05 per unit of risk. If you would invest 1,654 in Cedar Realty Trust on May 2, 2025 and sell it today you would earn a total of 79.00 from holding Cedar Realty Trust or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Brookfield Property Partners
Performance |
| Timeline |
| Cedar Realty Trust |
| Brookfield Property |
Cedar Realty and Brookfield Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Brookfield Property
The main advantage of trading using opposite Cedar Realty and Brookfield Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty position performs unexpectedly, Brookfield Property 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 Brookfield Property will offset losses from the drop in Brookfield Property's long position.| Cedar Realty vs. Cedar Realty Trust | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. CBL Associates Properties | Cedar Realty vs. Saul Centers |
| Brookfield Property vs. KNOT Offshore Partners | Brookfield Property vs. Melco Resorts Entertainment | Brookfield Property vs. Direct Line Insurance | Brookfield Property vs. Assurant |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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