Correlation Between Site Centers and Apple Hospitality
Can any of the company-specific risk be diversified away by investing in both Site Centers and Apple Hospitality 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 Apple Hospitality 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 Apple Hospitality REIT, you can compare the effects of market volatilities on Site Centers and Apple Hospitality 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 Apple Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Apple Hospitality.
Diversification Opportunities for Site Centers and Apple Hospitality
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Site and Apple is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Apple Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Hospitality REIT 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 Apple Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Hospitality REIT has no effect on the direction of Site Centers i.e., Site Centers and Apple Hospitality go up and down completely randomly.
Pair Corralation between Site Centers and Apple Hospitality
Given the investment horizon of 90 days Site Centers Corp is expected to generate 1.76 times more return on investment than Apple Hospitality. However, Site Centers is 1.76 times more volatile than Apple Hospitality REIT. It trades about 0.06 of its potential returns per unit of risk. Apple Hospitality REIT is currently generating about 0.01 per unit of risk. If you would invest 891.00 in Site Centers Corp on August 27, 2024 and sell it today you would earn a total of 719.00 from holding Site Centers Corp or generate 80.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Apple Hospitality REIT
Performance |
| Timeline |
| Site Centers Corp |
| Apple Hospitality REIT |
Site Centers and Apple Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Apple Hospitality
The main advantage of trading using opposite Site Centers and Apple Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Apple Hospitality 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 Apple Hospitality will offset losses from the drop in Apple Hospitality's long position.| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
| Apple Hospitality vs. Park Hotels Resorts | Apple Hospitality vs. Diamondrock Hospitality | Apple Hospitality vs. Ryman Hospitality Properties | Apple Hospitality vs. Pebblebrook Hotel Trust |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |