Correlation Between IShares Real and Site Centers
Can any of the company-specific risk be diversified away by investing in both IShares Real 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 IShares Real and Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Real Estate and Site Centers Corp, you can compare the effects of market volatilities on IShares Real 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 IShares Real with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Real and Site Centers.
Diversification Opportunities for IShares Real and Site Centers
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Site is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding iShares Real Estate 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 IShares Real 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 iShares Real Estate 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 IShares Real i.e., IShares Real and Site Centers go up and down completely randomly.
Pair Corralation between IShares Real and Site Centers
Considering the 90-day investment horizon IShares Real is expected to generate 2.36 times less return on investment than Site Centers. But when comparing it to its historical volatility, iShares Real Estate is 4.69 times less risky than Site Centers. It trades about 0.18 of its potential returns per unit of risk. Site Centers Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,095 in Site Centers Corp on August 28, 2024 and sell it today you would earn a total of 505.00 from holding Site Centers Corp or generate 46.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Real Estate vs. Site Centers Corp
Performance |
| Timeline |
| iShares Real Estate |
| Site Centers Corp |
IShares Real and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Real and Site Centers
The main advantage of trading using opposite IShares Real and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Real 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.| IShares Real vs. Vanguard Real Estate | IShares Real vs. Howard Hughes | IShares Real vs. Site Centers 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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