Correlation Between National Retail and Site Centers
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and Site Centers Corp, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and Site Centers.
Diversification Opportunities for National Retail and Site Centers
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Site is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties 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 National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and Site Centers go up and down completely randomly.
Pair Corralation between National Retail and Site Centers
Considering the 90-day investment horizon National Retail Properties is expected to under-perform the Site Centers. In addition to that, National Retail is 1.02 times more volatile than Site Centers Corp. It trades about -0.23 of its total potential returns per unit of risk. Site Centers Corp is currently generating about -0.13 per unit of volatility. If you would invest 1,690 in Site Centers Corp on August 24, 2024 and sell it today you would lose (80.00) from holding Site Centers Corp or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
National Retail Properties vs. Site Centers Corp
Performance |
| Timeline |
| National Retail Prop |
| Site Centers Corp |
National Retail and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and Site Centers
The main advantage of trading using opposite National Retail and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Federal Realty Investment | National Retail vs. Agree Realty | National Retail vs. Tanger Factory Outlet | National Retail vs. Netstreit 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |