Correlation Between Regency Centers and Site Centers
Can any of the company-specific risk be diversified away by investing in both Regency Centers 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 Regency Centers and Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regency Centers and Site Centers Corp, you can compare the effects of market volatilities on Regency Centers 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 Regency Centers with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regency Centers and Site Centers.
Diversification Opportunities for Regency Centers and Site Centers
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Regency and Site is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Regency Centers 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 Regency Centers 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 Regency Centers 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 Regency Centers i.e., Regency Centers and Site Centers go up and down completely randomly.
Pair Corralation between Regency Centers and Site Centers
Considering the 90-day investment horizon Regency Centers is expected to generate 0.5 times more return on investment than Site Centers. However, Regency Centers is 2.0 times less risky than Site Centers. It trades about 0.18 of its potential returns per unit of risk. Site Centers Corp is currently generating about -0.13 per unit of risk. If you would invest 7,223 in Regency Centers on August 24, 2024 and sell it today you would earn a total of 228.00 from holding Regency Centers or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regency Centers vs. Site Centers Corp
Performance |
| Timeline |
| Regency Centers |
| Site Centers Corp |
Regency Centers and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regency Centers and Site Centers
The main advantage of trading using opposite Regency Centers and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regency Centers 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.| Regency Centers vs. Federal Realty Investment | Regency Centers vs. Agree Realty | Regency Centers vs. Tanger Factory Outlet | Regency Centers 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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