Correlation Between Cedar Realty and Neuberger Berman

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

Diversification Opportunities for Cedar Realty and Neuberger Berman

0.27

Correlation Coefficient

Cedar Realty  Neuberger Berman

Modest diversification

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

Pair Corralation between Cedar Realty and Neuberger Berman

Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.78 times more return on investment than Neuberger Berman. However, Cedar Realty Trust is 1.28 times less risky than Neuberger Berman. It trades about 0.19 of its potential returns per unit of risk. Neuberger Berman Real is currently generating about -0.04 per unit of risk. If you would invest  1,463  in Cedar Realty Trust on May 4, 2025 and sell it today you would earn a total of  118.00  from holding Cedar Realty Trust or generate 8.07% return on investment over 90 days.

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

Cedar Realty Trust  vs.  Neuberger Berman Real

Cedar Realty Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Cedar Realty may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Neuberger Berman Real

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neuberger Berman Real has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cedar Realty and Neuberger Berman

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

The idea behind Cedar Realty Trust and Neuberger Berman Real 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.