Correlation Between UDR and Boardwalk Real

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

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

Diversification Opportunities for UDR and Boardwalk Real

-0.38

Correlation Coefficient

UDR  Boardwalk Real

Very good diversification

The 3 months correlation between UDR and Boardwalk is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding UDR Inc and Boardwalk Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boardwalk Real Estate and UDR 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 UDR Inc are associated (or correlated) with Boardwalk Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boardwalk Real Estate has no effect on the direction of UDR i.e., UDR and Boardwalk Real go up and down completely randomly.

Pair Corralation between UDR and Boardwalk Real

Considering the 90-day investment horizon UDR Inc is expected to under-perform the Boardwalk Real. But the stock apears to be less risky and, when comparing its historical volatility, UDR Inc is 1.23 times less risky than Boardwalk Real. The stock trades about -0.13 of its potential returns per unit of risk. The Boardwalk Real Estate is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  4,900  in Boardwalk Real Estate on May 5, 2025 and sell it today you would earn a total of  317.00  from holding Boardwalk Real Estate or generate 6.47% return on investment over 90 days.

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

UDR Inc  vs.  Boardwalk Real Estate

UDR Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days UDR Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Boardwalk Real Estate

Risk-Adjusted Performance

Modest

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

Pair Trading with UDR and Boardwalk Real

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

The idea behind UDR Inc and Boardwalk Real Estate 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.