Correlation Between Saul Centers and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Saul Centers and Tanger Factory 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 Tanger Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saul Centers and Tanger Factory Outlet, you can compare the effects of market volatilities on Saul Centers and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saul Centers and Tanger Factory.
Diversification Opportunities for Saul Centers and Tanger Factory
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saul and Tanger is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Saul Centers i.e., Saul Centers and Tanger Factory go up and down completely randomly.
Pair Corralation between Saul Centers and Tanger Factory
Considering the 90-day investment horizon Saul Centers is expected to under-perform the Tanger Factory. But the stock apears to be less risky and, when comparing its historical volatility, Saul Centers is 1.44 times less risky than Tanger Factory. The stock trades about -0.03 of its potential returns per unit of risk. The Tanger Factory Outlet is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,338 in Tanger Factory Outlet on November 28, 2024 and sell it today you would earn a total of 192.00 from holding Tanger Factory Outlet or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saul Centers vs. Tanger Factory Outlet
Performance |
| Timeline |
| Saul Centers |
| Tanger Factory Outlet |
Saul Centers and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saul Centers and Tanger Factory
The main advantage of trading using opposite Saul Centers and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saul Centers position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.| Saul Centers vs. Urban Edge Properties | Saul Centers vs. Rithm Property Trust | Saul Centers vs. Site Centers Corp | Saul Centers vs. Kite Realty Group |
| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory vs. Brixmor Property |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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