Correlation Between Emera Maine and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Emera Maine and SITE Centers 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 Emera Maine and SITE Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emera Maine PFD and SITE Centers Corp, you can compare the effects of market volatilities on Emera Maine and SITE Centers 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 Emera Maine with a short position of SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emera Maine and SITE Centers.
Diversification Opportunities for Emera Maine and SITE Centers
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emera and SITE is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Emera Maine PFD and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers Corp and Emera Maine 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 Emera Maine PFD are associated (or correlated) with SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Emera Maine i.e., Emera Maine and SITE Centers go up and down completely randomly.
Pair Corralation between Emera Maine and SITE Centers
If you would invest 2,310 in SITE Centers Corp on September 4, 2024 and sell it today you would earn a total of 114.00 from holding SITE Centers Corp or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
Emera Maine PFD vs. SITE Centers Corp
Performance |
| Timeline |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SITE Centers Corp |
Emera Maine and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emera Maine and SITE Centers
The main advantage of trading using opposite Emera Maine and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emera Maine position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' long position.| Emera Maine vs. Eldorado Gold Corp | Emera Maine vs. SFL Corporation | Emera Maine vs. BBB Foods | Emera Maine vs. Chester Mining |
| SITE Centers vs. Algoma Steel Group | SITE Centers vs. Sanyo Special Steel | SITE Centers vs. Olympic Steel | SITE Centers vs. Patterson UTI Energy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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