Correlation Between Retail Opportunity and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Retail Opportunity and Slate Grocery 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 Retail Opportunity and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Opportunity Investments and Slate Grocery REIT, you can compare the effects of market volatilities on Retail Opportunity and Slate Grocery 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 Retail Opportunity with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Opportunity and Slate Grocery.
Diversification Opportunities for Retail Opportunity and Slate Grocery
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Retail and Slate is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and Retail Opportunity 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 Retail Opportunity Investments are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Retail Opportunity i.e., Retail Opportunity and Slate Grocery go up and down completely randomly.
Pair Corralation between Retail Opportunity and Slate Grocery
Given the investment horizon of 90 days Retail Opportunity Investments is expected to generate 1.66 times more return on investment than Slate Grocery. However, Retail Opportunity is 1.66 times more volatile than Slate Grocery REIT. It trades about 0.22 of its potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.22 per unit of risk. If you would invest 1,586 in Retail Opportunity Investments on August 25, 2024 and sell it today you would earn a total of 151.00 from holding Retail Opportunity Investments or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Opportunity Investments vs. Slate Grocery REIT
Performance |
| Timeline |
| Retail Opportunity |
| Slate Grocery REIT |
Retail Opportunity and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Opportunity and Slate Grocery
The main advantage of trading using opposite Retail Opportunity and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Opportunity position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| Retail Opportunity vs. Federal Realty Investment | Retail Opportunity vs. Agree Realty | Retail Opportunity vs. Tanger Factory Outlet | Retail Opportunity vs. Netstreit Corp |
| Slate Grocery vs. Smart REIT | Slate Grocery vs. Phillips Edison Co | Slate Grocery vs. Simon Property Group | Slate Grocery vs. Plaza Retail REIT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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