Correlation Between Saul Centers and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Saul Centers and Regency 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 Saul Centers and Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saul Centers and Regency Centers, you can compare the effects of market volatilities on Saul Centers and Regency 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 Saul Centers with a short position of Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saul Centers and Regency Centers.
Diversification Opportunities for Saul Centers and Regency Centers
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saul and Regency is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Saul Centers i.e., Saul Centers and Regency Centers go up and down completely randomly.
Pair Corralation between Saul Centers and Regency Centers
Considering the 90-day investment horizon Saul Centers is expected to under-perform the Regency Centers. In addition to that, Saul Centers is 1.59 times more volatile than Regency Centers. It trades about 0.0 of its total potential returns per unit of risk. Regency Centers is currently generating about 0.18 per unit of volatility. If you would invest 7,223 in Regency Centers on August 24, 2024 and sell it today you would earn a total of 228.00 from holding Regency Centers or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saul Centers vs. Regency Centers
Performance |
| Timeline |
| Saul Centers |
| Regency Centers |
Saul Centers and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saul Centers and Regency Centers
The main advantage of trading using opposite Saul Centers and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saul Centers position performs unexpectedly, Regency 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| Saul Centers vs. Urban Edge Properties | Saul Centers vs. Site Centers Corp | Saul Centers vs. Kite Realty Group | Saul Centers vs. Acadia Realty Trust |
| Regency Centers vs. Federal Realty Investment | Regency Centers vs. Agree Realty | Regency Centers vs. Tanger Factory Outlet | Regency Centers vs. Netstreit Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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