Correlation Between SITE Centers and Gabelli Multimedia
Can any of the company-specific risk be diversified away by investing in both SITE Centers and Gabelli Multimedia 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 SITE Centers and Gabelli Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITE Centers Corp and The Gabelli Multimedia, you can compare the effects of market volatilities on SITE Centers and Gabelli Multimedia 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 SITE Centers with a short position of Gabelli Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITE Centers and Gabelli Multimedia.
Diversification Opportunities for SITE Centers and Gabelli Multimedia
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SITE and Gabelli is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SITE Centers Corp and The Gabelli Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Gabelli Multimedia and SITE 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 SITE Centers Corp are associated (or correlated) with Gabelli Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Gabelli Multimedia has no effect on the direction of SITE Centers i.e., SITE Centers and Gabelli Multimedia go up and down completely randomly.
Pair Corralation between SITE Centers and Gabelli Multimedia
Assuming the 90 days trading horizon SITE Centers Corp is expected to generate 0.22 times more return on investment than Gabelli Multimedia. However, SITE Centers Corp is 4.52 times less risky than Gabelli Multimedia. It trades about 0.07 of its potential returns per unit of risk. The Gabelli Multimedia is currently generating about -0.24 per unit of risk. If you would invest 2,514 in SITE Centers Corp on September 5, 2024 and sell it today you would earn a total of 2.00 from holding SITE Centers Corp or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
SITE Centers Corp vs. The Gabelli Multimedia
Performance |
| Timeline |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| The Gabelli Multimedia |
SITE Centers and Gabelli Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITE Centers and Gabelli Multimedia
The main advantage of trading using opposite SITE Centers and Gabelli Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITE Centers position performs unexpectedly, Gabelli Multimedia 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 Gabelli Multimedia will offset losses from the drop in Gabelli Multimedia's long position.| SITE Centers vs. The Gabelli Multimedia | SITE Centers vs. The Gabelli Equity | SITE Centers vs. Virtus AllianzGI Convertible | SITE Centers vs. John Hancock Income |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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