Correlation Between One Liberty and Saul Centers
Can any of the company-specific risk be diversified away by investing in both One Liberty and Saul 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 One Liberty and Saul Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Liberty Properties and Saul Centers, you can compare the effects of market volatilities on One Liberty and Saul 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 One Liberty with a short position of Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Liberty and Saul Centers.
Diversification Opportunities for One Liberty and Saul Centers
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and Saul is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and One Liberty 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 One Liberty Properties are associated (or correlated) with Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of One Liberty i.e., One Liberty and Saul Centers go up and down completely randomly.
Pair Corralation between One Liberty and Saul Centers
Considering the 90-day investment horizon One Liberty Properties is expected to generate 1.2 times more return on investment than Saul Centers. However, One Liberty is 1.2 times more volatile than Saul Centers. It trades about 0.14 of its potential returns per unit of risk. Saul Centers is currently generating about 0.09 per unit of risk. If you would invest 2,239 in One Liberty Properties on August 24, 2024 and sell it today you would earn a total of 620.00 from holding One Liberty Properties or generate 27.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Liberty Properties vs. Saul Centers
Performance |
| Timeline |
| One Liberty Properties |
| Saul Centers |
One Liberty and Saul Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Liberty and Saul Centers
The main advantage of trading using opposite One Liberty and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Liberty position performs unexpectedly, Saul 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 Saul Centers will offset losses from the drop in Saul Centers' long position.| One Liberty vs. Generationome Properties | One Liberty vs. HUMANA INC | One Liberty vs. Aquagold International | One Liberty vs. Barloworld Ltd ADR |
| Saul Centers vs. Urban Edge Properties | Saul Centers vs. Site Centers Corp | Saul Centers vs. Kite Realty Group | Saul Centers vs. Acadia Realty Trust |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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