Correlation Between City Office and Site Centers
Can any of the company-specific risk be diversified away by investing in both City Office 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 City Office and Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Office and Site Centers Corp, you can compare the effects of market volatilities on City Office 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 City Office with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Office and Site Centers.
Diversification Opportunities for City Office and Site Centers
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Site is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding City Office 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 City Office 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 City Office 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 City Office i.e., City Office and Site Centers go up and down completely randomly.
Pair Corralation between City Office and Site Centers
Considering the 90-day investment horizon City Office is expected to generate 1.81 times more return on investment than Site Centers. However, City Office is 1.81 times more volatile than Site Centers Corp. It trades about 0.1 of its potential returns per unit of risk. Site Centers Corp is currently generating about -0.27 per unit of risk. If you would invest 543.00 in City Office on August 30, 2024 and sell it today you would earn a total of 29.00 from holding City Office or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Office vs. Site Centers Corp
Performance |
| Timeline |
| City Office |
| Site Centers Corp |
City Office and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Office and Site Centers
The main advantage of trading using opposite City Office and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Office 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.| City Office vs. Hudson Pacific Properties | City Office vs. Piedmont Office Realty | City Office vs. Office Properties Income | City Office vs. Kilroy Realty Corp |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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