Correlation Between Old Republic and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Old Republic 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 Old Republic and SITE Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and SITE Centers Corp, you can compare the effects of market volatilities on Old Republic 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 Old Republic with a short position of SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and SITE Centers.
Diversification Opportunities for Old Republic and SITE Centers
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and SITE is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International 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 Old Republic 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 Old Republic International 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 Old Republic i.e., Old Republic and SITE Centers go up and down completely randomly.
Pair Corralation between Old Republic and SITE Centers
Considering the 90-day investment horizon Old Republic International is expected to under-perform the SITE Centers. In addition to that, Old Republic is 14.7 times more volatile than SITE Centers Corp. It trades about -0.1 of its total potential returns per unit of risk. SITE Centers Corp is currently generating about 0.16 per unit of volatility. If you would invest 2,513 in SITE Centers Corp on September 13, 2024 and sell it today you would earn a total of 3.00 from holding SITE Centers Corp or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Old Republic International vs. SITE Centers Corp
Performance |
| Timeline |
| Old Republic Interna |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Old Republic and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and SITE Centers
The main advantage of trading using opposite Old Republic and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic 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.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
| SITE Centers vs. Pinterest | SITE Centers vs. CapitaLand Investment Limited | SITE Centers vs. Weibo Corp | SITE Centers vs. Old Republic International |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |