Correlation Between Nexpoint Residential and Site Centers
Can any of the company-specific risk be diversified away by investing in both Nexpoint Residential 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 Nexpoint Residential and Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexpoint Residential Trust and Site Centers Corp, you can compare the effects of market volatilities on Nexpoint Residential 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 Nexpoint Residential with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexpoint Residential and Site Centers.
Diversification Opportunities for Nexpoint Residential and Site Centers
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexpoint and Site is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Nexpoint Residential Trust 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 Nexpoint Residential 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 Nexpoint Residential Trust 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 Nexpoint Residential i.e., Nexpoint Residential and Site Centers go up and down completely randomly.
Pair Corralation between Nexpoint Residential and Site Centers
Given the investment horizon of 90 days Nexpoint Residential Trust is expected to generate 1.3 times more return on investment than Site Centers. However, Nexpoint Residential is 1.3 times more volatile than Site Centers Corp. It trades about 0.3 of its potential returns per unit of risk. Site Centers Corp is currently generating about -0.17 per unit of risk. If you would invest 4,269 in Nexpoint Residential Trust on August 31, 2024 and sell it today you would earn a total of 477.00 from holding Nexpoint Residential Trust or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexpoint Residential Trust vs. Site Centers Corp
Performance |
| Timeline |
| Nexpoint Residential |
| Site Centers Corp |
Nexpoint Residential and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexpoint Residential and Site Centers
The main advantage of trading using opposite Nexpoint Residential and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexpoint Residential 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.| Nexpoint Residential vs. Independence Realty Trust | Nexpoint Residential vs. Community Healthcare Trust | Nexpoint Residential vs. Terreno Realty | Nexpoint Residential vs. National Storage Affiliates |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |