Correlation Between Equinix and Seritage Growth
Can any of the company-specific risk be diversified away by investing in both Equinix and Seritage Growth 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 Equinix and Seritage Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinix and Seritage Growth Properties, you can compare the effects of market volatilities on Equinix and Seritage Growth 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 Equinix with a short position of Seritage Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and Seritage Growth.
Diversification Opportunities for Equinix and Seritage Growth
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Equinix and Seritage is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and Seritage Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seritage Growth Prop and Equinix 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 Equinix are associated (or correlated) with Seritage Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seritage Growth Prop has no effect on the direction of Equinix i.e., Equinix and Seritage Growth go up and down completely randomly.
Pair Corralation between Equinix and Seritage Growth
Given the investment horizon of 90 days Equinix is expected to generate 0.47 times more return on investment than Seritage Growth. However, Equinix is 2.15 times less risky than Seritage Growth. It trades about 0.13 of its potential returns per unit of risk. Seritage Growth Properties is currently generating about -0.03 per unit of risk. If you would invest 90,831 in Equinix on August 27, 2024 and sell it today you would earn a total of 2,806 from holding Equinix or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinix vs. Seritage Growth Properties
Performance |
| Timeline |
| Equinix |
| Seritage Growth Prop |
Equinix and Seritage Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinix and Seritage Growth
The main advantage of trading using opposite Equinix and Seritage Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix position performs unexpectedly, Seritage Growth 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 Seritage Growth will offset losses from the drop in Seritage Growth's long position.| Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
| Seritage Growth vs. Investcorp Credit Management | Seritage Growth vs. Medalist Diversified Reit | Seritage Growth vs. Aquagold International | Seritage Growth vs. Morningstar Unconstrained Allocation |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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