Correlation Between EastGroup Properties and Urban Edge

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

By analyzing existing cross correlation between EastGroup Properties and Urban Edge Properties, you can compare the effects of market volatilities on EastGroup Properties and Urban Edge 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 EastGroup Properties with a short position of Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Urban Edge.

Diversification Opportunities for EastGroup Properties and Urban Edge

0.0

Correlation Coefficient

EastGroup Properties  Urban Edge

Pay attention - limited upside

The 3 months correlation between EastGroup and Urban is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties and EastGroup Properties 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 EastGroup Properties are associated (or correlated) with Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of EastGroup Properties i.e., EastGroup Properties and Urban Edge go up and down completely randomly.

Pair Corralation between EastGroup Properties and Urban Edge

Considering the 90-day investment horizon EastGroup Properties is expected to generate 19.78 times less return on investment than Urban Edge. But when comparing it to its historical volatility, EastGroup Properties is 1.23 times less risky than Urban Edge. It trades about 0.0 of its potential returns per unit of risk. Urban Edge Properties is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,823  in Urban Edge Properties on May 7, 2025 and sell it today you would earn a total of  121.00  from holding Urban Edge Properties or generate 6.64% return on investment over 90 days.

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

EastGroup Properties  vs.  Urban Edge Properties

EastGroup Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days EastGroup Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, EastGroup Properties is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Urban Edge Properties

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Urban Edge Properties are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Urban Edge may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with EastGroup Properties and Urban Edge

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

The idea behind EastGroup Properties and Urban Edge Properties 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.