Correlation Between Riocan REIT and Seritage Growth
Can any of the company-specific risk be diversified away by investing in both Riocan REIT and Seritage Growth 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 Riocan REIT and Seritage Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Riocan REIT and Seritage Growth Properties, you can compare the effects of market volatilities on Riocan REIT and Seritage Growth 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 Riocan REIT with a short position of Seritage Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Riocan REIT and Seritage Growth.
Diversification Opportunities for Riocan REIT and Seritage Growth
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Riocan and Seritage is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Riocan REIT and Seritage Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seritage Growth Prop and Riocan REIT 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 Riocan REIT are associated (or correlated) with Seritage Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seritage Growth Prop has no effect on the direction of Riocan REIT i.e., Riocan REIT and Seritage Growth go up and down completely randomly.
Pair Corralation between Riocan REIT and Seritage Growth
Assuming the 90 days horizon Riocan REIT is expected to under-perform the Seritage Growth. But the pink sheet apears to be less risky and, when comparing its historical volatility, Riocan REIT is 1.69 times less risky than Seritage Growth. The pink sheet trades about -0.2 of its potential returns per unit of risk. The Seritage Growth Properties is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Seritage Growth Properties on August 29, 2024 and sell it today you would lose (20.00) from holding Seritage Growth Properties or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Riocan REIT vs. Seritage Growth Properties
Performance |
| Timeline |
| Riocan REIT |
| Seritage Growth Prop |
Riocan REIT and Seritage Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Riocan REIT and Seritage Growth
The main advantage of trading using opposite Riocan REIT and Seritage Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Riocan REIT position performs unexpectedly, Seritage Growth 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 Seritage Growth will offset losses from the drop in Seritage Growth's long position.| Riocan REIT vs. Boston Properties | Riocan REIT vs. Kilroy Realty Corp | Riocan REIT vs. SL Green Realty | Riocan REIT vs. Vornado Realty Trust |
| Seritage Growth vs. Site Centers Corp | Seritage Growth vs. Saul Centers | Seritage Growth vs. Acadia Realty Trust | Seritage Growth vs. Kite Realty Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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