Correlation Between CBL Associates and Macerich

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

Diversification Opportunities for CBL Associates and Macerich

0.91

Correlation Coefficient

CBL Associates  Macerich

Almost no diversification

The 3 months correlation between CBL and Macerich is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Macerich Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich 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 Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of CBL Associates i.e., CBL Associates and Macerich go up and down completely randomly.

Pair Corralation between CBL Associates and Macerich

Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.69 times more return on investment than Macerich. However, CBL Associates Properties is 1.46 times less risky than Macerich. It trades about 0.12 of its potential returns per unit of risk. Macerich Company is currently generating about 0.07 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 Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

CBL Associates Properties  vs.  Macerich Company

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.

Macerich

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Macerich Company are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Macerich may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with CBL Associates and Macerich

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

The idea behind CBL Associates Properties and Macerich Company 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.