Correlation Between Inventrust Properties and Seritage Growth
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties 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 Inventrust Properties and Seritage Growth 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 Seritage Growth Properties, you can compare the effects of market volatilities on Inventrust Properties 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 Inventrust Properties with a short position of Seritage Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Seritage Growth.
Diversification Opportunities for Inventrust Properties and Seritage Growth
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inventrust and Seritage is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp 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 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 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 Inventrust Properties i.e., Inventrust Properties and Seritage Growth go up and down completely randomly.
Pair Corralation between Inventrust Properties and Seritage Growth
Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 0.44 times more return on investment than Seritage Growth. However, Inventrust Properties Corp is 2.29 times less risky than Seritage Growth. It trades about 0.22 of its potential returns per unit of risk. Seritage Growth Properties is currently generating about 0.02 per unit of risk. If you would invest 2,948 in Inventrust Properties Corp on August 24, 2024 and sell it today you would earn a total of 147.00 from holding Inventrust Properties Corp or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Inventrust Properties Corp vs. Seritage Growth Properties
Performance |
| Timeline |
| Inventrust Properties |
| Seritage Growth Prop |
Inventrust Properties and Seritage Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventrust Properties and Seritage Growth
The main advantage of trading using opposite Inventrust Properties and Seritage Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties 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.| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
| Seritage Growth vs. Site Centers Corp | Seritage Growth vs. Saul Centers | Seritage Growth vs. Acadia Realty Trust | Seritage Growth vs. Kite Realty Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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