Correlation Between Site Centers and Global Net
Can any of the company-specific risk be diversified away by investing in both Site Centers and Global Net 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 Global Net 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 Global Net Lease,, you can compare the effects of market volatilities on Site Centers and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Global Net.
Diversification Opportunities for Site Centers and Global Net
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Site and Global is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Global Net Lease, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease, 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease, has no effect on the direction of Site Centers i.e., Site Centers and Global Net go up and down completely randomly.
Pair Corralation between Site Centers and Global Net
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the Global Net. In addition to that, Site Centers is 1.07 times more volatile than Global Net Lease,. It trades about -0.14 of its total potential returns per unit of risk. Global Net Lease, is currently generating about -0.04 per unit of volatility. If you would invest 722.00 in Global Net Lease, on November 18, 2024 and sell it today you would lose (11.00) from holding Global Net Lease, or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Global Net Lease,
Performance |
| Timeline |
| Site Centers Corp |
| Global Net Lease, |
Site Centers and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Global Net
The main advantage of trading using opposite Site Centers and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net'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 |
| Global Net vs. Peakstone Realty Trust | Global Net vs. Gladstone Commercial | Global Net vs. CTO Realty Growth | Global Net vs. Brightspire Capital |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |