Correlation Between Site Centers and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Site Centers and Cedar Realty 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 Cedar Realty 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 Cedar Realty Trust, you can compare the effects of market volatilities on Site Centers and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Cedar Realty.
Diversification Opportunities for Site Centers and Cedar Realty
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Site and Cedar is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Site Centers i.e., Site Centers and Cedar Realty go up and down completely randomly.
Pair Corralation between Site Centers and Cedar Realty
Given the investment horizon of 90 days Site Centers Corp is expected to generate 1.3 times more return on investment than Cedar Realty. However, Site Centers is 1.3 times more volatile than Cedar Realty Trust. It trades about 0.06 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.06 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 686.00 from holding Site Centers Corp or generate 77.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Cedar Realty Trust
Performance |
| Timeline |
| Site Centers Corp |
| Cedar Realty Trust |
Site Centers and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Cedar Realty
The main advantage of trading using opposite Site Centers and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty'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 |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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