Correlation Between CBL Associates and Acadia Realty

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

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

Diversification Opportunities for CBL Associates and Acadia Realty

-0.37

Correlation Coefficient

CBL Associates  Acadia Realty

Very good diversification

The 3 months correlation between CBL and Acadia is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust and CBL Associates 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 CBL Associates Properties are associated (or correlated) with Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of CBL Associates i.e., CBL Associates and Acadia Realty go up and down completely randomly.

Pair Corralation between CBL Associates and Acadia Realty

Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.99 times more return on investment than Acadia Realty. However, CBL Associates Properties is 1.01 times less risky than Acadia Realty. It trades about 0.12 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about -0.03 per unit of risk. If you would invest  2,379  in CBL Associates Properties on May 5, 2025 and sell it today you would earn a total of  277.00  from holding CBL Associates Properties or generate 11.64% return on investment over 90 days.

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

CBL Associates Properties  vs.  Acadia Realty Trust

CBL Associates Properties

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CBL Associates Properties are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent fundamental drivers, CBL Associates may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Acadia Realty Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acadia Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Acadia Realty is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with CBL Associates and Acadia Realty

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

The idea behind CBL Associates Properties and Acadia 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.