Correlation Between Inventrust Properties and Saul Centers
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties and Saul 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 Inventrust Properties and Saul Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventrust Properties Corp and Saul Centers, you can compare the effects of market volatilities on Inventrust Properties and Saul 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 Inventrust Properties with a short position of Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Saul Centers.
Diversification Opportunities for Inventrust Properties and Saul Centers
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inventrust and Saul is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Inventrust Properties 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 Inventrust Properties Corp are associated (or correlated) with Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Inventrust Properties i.e., Inventrust Properties and Saul Centers go up and down completely randomly.
Pair Corralation between Inventrust Properties and Saul Centers
Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 1.09 times more return on investment than Saul Centers. However, Inventrust Properties is 1.09 times more volatile than Saul Centers. It trades about 0.16 of its potential returns per unit of risk. Saul Centers is currently generating about 0.15 per unit of risk. If you would invest 2,475 in Inventrust Properties Corp on September 1, 2024 and sell it today you would earn a total of 622.00 from holding Inventrust Properties Corp or generate 25.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventrust Properties Corp vs. Saul Centers
Performance |
| Timeline |
| Inventrust Properties |
| Saul Centers |
Inventrust Properties and Saul Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventrust Properties and Saul Centers
The main advantage of trading using opposite Inventrust Properties and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties position performs unexpectedly, Saul 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 Saul Centers will offset losses from the drop in Saul Centers' long position.| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
| Saul Centers vs. Saul Centers | Saul Centers vs. Braemar Hotels Resorts | Saul Centers vs. Armada Hoffler Properties |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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