Correlation Between Site Centers and EastGroup Properties
Can any of the company-specific risk be diversified away by investing in both Site Centers and EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties, you can compare the effects of market volatilities on Site Centers and EastGroup Properties 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 EastGroup Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and EastGroup Properties.
Diversification Opportunities for Site Centers and EastGroup Properties
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Site and EastGroup is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and EastGroup Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EastGroup Properties 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 EastGroup Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EastGroup Properties has no effect on the direction of Site Centers i.e., Site Centers and EastGroup Properties go up and down completely randomly.
Pair Corralation between Site Centers and EastGroup Properties
Given the investment horizon of 90 days Site Centers Corp is expected to generate 5.23 times more return on investment than EastGroup Properties. However, Site Centers is 5.23 times more volatile than EastGroup Properties. It trades about 0.1 of its potential returns per unit of risk. EastGroup Properties is currently generating about -0.07 per unit of risk. If you would invest 1,197 in Site Centers Corp on August 28, 2024 and sell it today you would earn a total of 403.00 from holding Site Centers Corp or generate 33.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. EastGroup Properties
Performance |
| Timeline |
| Site Centers Corp |
| EastGroup Properties |
Site Centers and EastGroup Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and EastGroup Properties
The main advantage of trading using opposite Site Centers and EastGroup Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, EastGroup Properties 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 EastGroup Properties will offset losses from the drop in EastGroup Properties' 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 |
| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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