Correlation Between Site Centers and Saul Centers
Can any of the company-specific risk be diversified away by investing in both Site Centers and Saul 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 Site Centers and Saul Centers 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 Saul Centers, you can compare the effects of market volatilities on Site Centers and Saul 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 Site Centers with a short position of Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Saul Centers.
Diversification Opportunities for Site Centers and Saul Centers
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Site and Saul is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers 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 Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Site Centers i.e., Site Centers and Saul Centers go up and down completely randomly.
Pair Corralation between Site Centers and Saul Centers
Given the investment horizon of 90 days Site Centers Corp is expected to generate 1.64 times more return on investment than Saul Centers. However, Site Centers is 1.64 times more volatile than Saul Centers. It trades about 0.06 of its potential returns per unit of risk. Saul Centers is currently generating about 0.05 per unit of risk. If you would invest 884.00 in Site Centers Corp on September 3, 2024 and sell it today you would earn a total of 668.00 from holding Site Centers Corp or generate 75.57% 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. Saul Centers
Performance |
| Timeline |
| Site Centers Corp |
| Saul Centers |
Site Centers and Saul Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Saul Centers
The main advantage of trading using opposite Site Centers and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Saul 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 Saul Centers will offset losses from the drop in Saul Centers' 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 |
| Saul Centers vs. Saul Centers | Saul Centers vs. Braemar Hotels Resorts | Saul Centers vs. Armada Hoffler Properties | Saul Centers vs. HUMANA INC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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