Correlation Between Jutal Offshore and Cedar Realty

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

By analyzing existing cross correlation between Jutal Offshore Oil and Cedar Realty Trust, you can compare the effects of market volatilities on Jutal Offshore and Cedar Realty 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 Jutal Offshore with a short position of Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jutal Offshore and Cedar Realty.

Diversification Opportunities for Jutal Offshore and Cedar Realty

-0.67

Correlation Coefficient

Jutal Offshore  Cedar Realty

Excellent diversification

The 3 months correlation between Jutal and Cedar is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jutal Offshore Oil and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust and Jutal Offshore 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 Jutal Offshore Oil are associated (or correlated) with Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Jutal Offshore i.e., Jutal Offshore and Cedar Realty go up and down completely randomly.

Pair Corralation between Jutal Offshore and Cedar Realty

If you would invest  1,572  in Cedar Realty Trust on January 29, 2024 and sell it today you would lose (12.00) from holding Cedar Realty Trust or give up 0.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Jutal Offshore Oil  vs.  Cedar Realty Trust

Jutal Offshore Oil

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jutal Offshore Oil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Cedar Realty Trust

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Cedar Realty may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Jutal Offshore and Cedar Realty

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

The idea behind Jutal Offshore Oil and Cedar Realty Trust 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.