Correlation Between Site Centers and Federal Realty
Can any of the company-specific risk be diversified away by investing in both Site Centers and Federal 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 Federal 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 Federal Realty Investment, you can compare the effects of market volatilities on Site Centers and Federal 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 Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Federal Realty.
Diversification Opportunities for Site Centers and Federal Realty
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Site and Federal is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment 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 Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of Site Centers i.e., Site Centers and Federal Realty go up and down completely randomly.
Pair Corralation between Site Centers and Federal Realty
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the Federal Realty. In addition to that, Site Centers is 1.52 times more volatile than Federal Realty Investment. It trades about -0.13 of its total potential returns per unit of risk. Federal Realty Investment is currently generating about 0.02 per unit of volatility. If you would invest 11,443 in Federal Realty Investment on August 24, 2024 and sell it today you would earn a total of 43.00 from holding Federal Realty Investment or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Federal Realty Investment
Performance |
| Timeline |
| Site Centers Corp |
| Federal Realty Investment |
Site Centers and Federal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Federal Realty
The main advantage of trading using opposite Site Centers and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Federal 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 Federal Realty will offset losses from the drop in Federal 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 |
| Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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