Correlation Between Cedar Realty and Pheton Holdings

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

Diversification Opportunities for Cedar Realty and Pheton Holdings

0.25

Correlation Coefficient

Cedar Realty  Pheton Holdings

Modest diversification

The 3 months correlation between Cedar and Pheton is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Pheton Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pheton Holdings 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 Pheton Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pheton Holdings has no effect on the direction of Cedar Realty i.e., Cedar Realty and Pheton Holdings go up and down completely randomly.

Pair Corralation between Cedar Realty and Pheton Holdings

Assuming the 90 days trading horizon Cedar Realty is expected to generate 21.53 times less return on investment than Pheton Holdings. But when comparing it to its historical volatility, Cedar Realty Trust is 10.05 times less risky than Pheton Holdings. It trades about 0.04 of its potential returns per unit of risk. Pheton Holdings Ltd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  376.00  in Pheton Holdings Ltd on May 5, 2025 and sell it today you would lose (295.00) from holding Pheton Holdings Ltd or give up 78.46% of portfolio value over 90 days.

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

Cedar Realty Trust  vs.  Pheton Holdings Ltd

Cedar Realty Trust

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Cedar Realty is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pheton Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pheton Holdings Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent technical indicators, Pheton Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cedar Realty and Pheton Holdings

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

The idea behind Cedar Realty Trust and Pheton Holdings Ltd 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.