Correlation Between Saul Centers and Link Real
Can any of the company-specific risk be diversified away by investing in both Saul Centers and Link 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 Saul Centers and Link Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saul Centers and Link Real Estate, you can compare the effects of market volatilities on Saul Centers and Link 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 Saul Centers with a short position of Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saul Centers and Link Real.
Diversification Opportunities for Saul Centers and Link Real
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saul and Link is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate and Saul Centers 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 Saul Centers are associated (or correlated) with Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of Saul Centers i.e., Saul Centers and Link Real go up and down completely randomly.
Pair Corralation between Saul Centers and Link Real
Assuming the 90 days trading horizon Saul Centers is expected to under-perform the Link Real. But the preferred stock apears to be less risky and, when comparing its historical volatility, Saul Centers is 1.81 times less risky than Link Real. The preferred stock trades about -0.07 of its potential returns per unit of risk. The Link Real Estate is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 425.00 in Link Real Estate on November 4, 2024 and sell it today you would lose (5.00) from holding Link Real Estate or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saul Centers vs. Link Real Estate
Performance |
| Timeline |
| Saul Centers |
| Link Real Estate |
Saul Centers and Link Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saul Centers and Link Real
The main advantage of trading using opposite Saul Centers and Link Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saul Centers position performs unexpectedly, Link 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 Link Real will offset losses from the drop in Link Real's long position.| Saul Centers vs. Saul Centers | Saul Centers vs. Braemar Hotels Resorts | Saul Centers vs. Armada Hoffler Properties |
| Link Real vs. Retail Opportunity Investments | Link Real vs. Kimco Realty | Link Real vs. Goldenstone Acquisition Ltd | Link Real vs. Tesla Inc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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