Correlation Between CP ALL and SITE Centers
Can any of the company-specific risk be diversified away by investing in both CP ALL 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 CP ALL and SITE Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CP ALL Public and SITE Centers Corp, you can compare the effects of market volatilities on CP ALL 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 CP ALL with a short position of SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and SITE Centers.
Diversification Opportunities for CP ALL and SITE Centers
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVPBF and SITE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public 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 CP ALL 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 CP ALL Public 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 CP ALL i.e., CP ALL and SITE Centers go up and down completely randomly.
Pair Corralation between CP ALL and SITE Centers
Assuming the 90 days horizon CP ALL Public is expected to generate 4.86 times more return on investment than SITE Centers. However, CP ALL is 4.86 times more volatile than SITE Centers Corp. It trades about 0.03 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.03 per unit of risk. If you would invest 171.00 in CP ALL Public on September 13, 2024 and sell it today you would earn a total of 13.00 from holding CP ALL Public or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
CP ALL Public vs. SITE Centers Corp
Performance |
| Timeline |
| CP ALL Public |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
CP ALL and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and SITE Centers
The main advantage of trading using opposite CP ALL and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL 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.The idea behind CP ALL Public and SITE Centers Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SITE Centers vs. Pinterest | SITE Centers vs. CapitaLand Investment Limited | SITE Centers vs. Weibo Corp | SITE Centers vs. Old Republic International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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