Correlation Between CT Real and UPS CDR
Can any of the company-specific risk be diversified away by investing in both CT Real and UPS CDR 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 CT Real and UPS CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CT Real Estate and UPS CDR, you can compare the effects of market volatilities on CT Real and UPS CDR 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 CT Real with a short position of UPS CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Real and UPS CDR.
Diversification Opportunities for CT Real and UPS CDR
Modest diversification
The 3 months correlation between CRT-UN and UPS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CT Real Estate and UPS CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPS CDR and CT Real 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 CT Real Estate are associated (or correlated) with UPS CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPS CDR has no effect on the direction of CT Real i.e., CT Real and UPS CDR go up and down completely randomly.
Pair Corralation between CT Real and UPS CDR
Assuming the 90 days trading horizon CT Real Estate is expected to generate 0.41 times more return on investment than UPS CDR. However, CT Real Estate is 2.45 times less risky than UPS CDR. It trades about 0.21 of its potential returns per unit of risk. UPS CDR is currently generating about -0.12 per unit of risk. If you would invest 1,524 in CT Real Estate on July 28, 2025 and sell it today you would earn a total of 148.00 from holding CT Real Estate or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CT Real Estate vs. UPS CDR
Performance |
| Timeline |
| CT Real Estate |
| UPS CDR |
CT Real and UPS CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CT Real and UPS CDR
The main advantage of trading using opposite CT Real and UPS CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Real position performs unexpectedly, UPS CDR 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 UPS CDR will offset losses from the drop in UPS CDR's long position.| CT Real vs. SmartCentres Real Estate | CT Real vs. First Capital Real | CT Real vs. Boardwalk Real Estate | CT Real vs. Dream Industrial Real |
| UPS CDR vs. North American Financial | UPS CDR vs. GoldQuest Mining Corp | UPS CDR vs. E L Financial Corp | UPS CDR vs. E L Financial Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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