Correlation Between Macerich and Silicon Gaming
Can any of the company-specific risk be diversified away by investing in both Macerich and Silicon Gaming 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 Macerich and Silicon Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macerich Company and Silicon Gaming, you can compare the effects of market volatilities on Macerich and Silicon Gaming 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 Macerich with a short position of Silicon Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macerich and Silicon Gaming.
Diversification Opportunities for Macerich and Silicon Gaming
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Macerich and Silicon is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Macerich Company and Silicon Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Gaming and Macerich 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 Macerich Company are associated (or correlated) with Silicon Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Gaming has no effect on the direction of Macerich i.e., Macerich and Silicon Gaming go up and down completely randomly.
Pair Corralation between Macerich and Silicon Gaming
If you would invest 1,816 in Macerich Company on September 2, 2024 and sell it today you would earn a total of 305.00 from holding Macerich Company or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macerich Company vs. Silicon Gaming
Performance |
| Timeline |
| Macerich |
| Silicon Gaming |
Macerich and Silicon Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macerich and Silicon Gaming
The main advantage of trading using opposite Macerich and Silicon Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macerich position performs unexpectedly, Silicon Gaming 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 Silicon Gaming will offset losses from the drop in Silicon Gaming's long position.| Macerich vs. Federal Realty Investment | Macerich vs. National Retail Properties | Macerich vs. Kimco Realty |
| Silicon Gaming vs. Cedar Realty Trust | Silicon Gaming vs. Wheeler Real Estate | Silicon Gaming vs. Macerich Company | Silicon Gaming vs. Simon Property 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |