Correlation Between CBL Associates and Site Centers
Can any of the company-specific risk be diversified away by investing in both CBL Associates 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 CBL Associates and Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Site Centers Corp, you can compare the effects of market volatilities on CBL Associates 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 CBL Associates with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Site Centers.
Diversification Opportunities for CBL Associates and Site Centers
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBL and Site is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties 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 CBL Associates 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 CBL Associates Properties 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 CBL Associates i.e., CBL Associates and Site Centers go up and down completely randomly.
Pair Corralation between CBL Associates and Site Centers
Considering the 90-day investment horizon CBL Associates is expected to generate 1.28 times less return on investment than Site Centers. But when comparing it to its historical volatility, CBL Associates Properties is 3.36 times less risky than Site Centers. It trades about 0.24 of its potential returns per unit of risk. Site Centers Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,090 in Site Centers Corp on August 26, 2024 and sell it today you would earn a total of 520.00 from holding Site Centers Corp or generate 47.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Site Centers Corp
Performance |
| Timeline |
| CBL Associates Properties |
| Site Centers Corp |
CBL Associates and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Site Centers
The main advantage of trading using opposite CBL Associates and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates 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.| CBL Associates vs. Investcorp Credit Management | CBL Associates vs. Medalist Diversified Reit | CBL Associates vs. Aquagold International | CBL Associates vs. Morningstar Unconstrained Allocation |
| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |