Correlation Between Cedar Realty and IAC

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

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

Diversification Opportunities for Cedar Realty and IAC

-0.27

Correlation Coefficient

Cedar Realty  IAC

Very good diversification

The 3 months correlation between Cedar and IAC is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and IAC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAC Inc and Cedar Realty 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 Cedar Realty Trust are associated (or correlated) with IAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAC Inc has no effect on the direction of Cedar Realty i.e., Cedar Realty and IAC go up and down completely randomly.

Pair Corralation between Cedar Realty and IAC

Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.68 times more return on investment than IAC. However, Cedar Realty Trust is 1.47 times less risky than IAC. It trades about 0.15 of its potential returns per unit of risk. IAC Inc is currently generating about -0.12 per unit of risk. If you would invest  1,637  in Cedar Realty Trust on August 1, 2025 and sell it today you would earn a total of  263.00  from holding Cedar Realty Trust or generate 16.07% return on investment over 90 days.

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

Cedar Realty Trust  vs.  IAC Inc

Cedar Realty Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Cedar Realty sustained solid returns over the last few months and may actually be approaching a breakup point.

IAC Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days IAC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cedar Realty and IAC

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

The idea behind Cedar Realty Trust and IAC Inc 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.