Correlation Between CBL Associates and Digitalbridge

Can any of the company-specific risk be diversified away by investing in both CBL Associates and Digitalbridge 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 Digitalbridge 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 Digitalbridge Group, you can compare the effects of market volatilities on CBL Associates and Digitalbridge 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 Digitalbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Digitalbridge.

Diversification Opportunities for CBL Associates and Digitalbridge

0.6

Correlation Coefficient

CBL Associates  Digitalbridge

Poor diversification

The 3 months correlation between CBL and Digitalbridge is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Digitalbridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digitalbridge Group 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 Digitalbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digitalbridge Group has no effect on the direction of CBL Associates i.e., CBL Associates and Digitalbridge go up and down completely randomly.

Pair Corralation between CBL Associates and Digitalbridge

Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.72 times more return on investment than Digitalbridge. However, CBL Associates Properties is 1.38 times less risky than Digitalbridge. It trades about 0.18 of its potential returns per unit of risk. Digitalbridge Group is currently generating about 0.09 per unit of risk. If you would invest  2,583  in CBL Associates Properties on July 3, 2025 and sell it today you would earn a total of  484.00  from holding CBL Associates Properties or generate 18.74% return on investment over 90 days.

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

CBL Associates Properties  vs.  Digitalbridge Group

CBL Associates Properties

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CBL Associates Properties are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile fundamental drivers, CBL Associates disclosed solid returns over the last few months and may actually be approaching a breakup point.

Digitalbridge Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Digitalbridge Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Digitalbridge may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with CBL Associates and Digitalbridge

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

The idea behind CBL Associates Properties and Digitalbridge Group 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.