Correlation Between Plaza Retail and Site Centers
Can any of the company-specific risk be diversified away by investing in both Plaza 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 Plaza 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 Plaza Retail REIT and Site Centers Corp, you can compare the effects of market volatilities on Plaza 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 Plaza Retail with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Site Centers.
Diversification Opportunities for Plaza Retail and Site Centers
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Plaza and Site is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT 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 Plaza 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 Plaza Retail REIT 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 Plaza Retail i.e., Plaza Retail and Site Centers go up and down completely randomly.
Pair Corralation between Plaza Retail and Site Centers
Assuming the 90 days horizon Plaza Retail is expected to generate 2.07 times less return on investment than Site Centers. In addition to that, Plaza Retail is 1.68 times more volatile than Site Centers Corp. It trades about 0.02 of its total potential returns per unit of risk. Site Centers Corp is currently generating about 0.06 per unit of volatility. If you would invest 820.00 in Site Centers Corp on August 24, 2024 and sell it today you would earn a total of 789.00 from holding Site Centers Corp or generate 96.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 69.7% |
| Values | Daily Returns |
Plaza Retail REIT vs. Site Centers Corp
Performance |
| Timeline |
| Plaza Retail REIT |
| Site Centers Corp |
Plaza Retail and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Site Centers
The main advantage of trading using opposite Plaza Retail and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza 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.| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery REIT |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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