Correlation Between Site Centers and Inventrust Properties
Can any of the company-specific risk be diversified away by investing in both Site Centers and Inventrust 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 Inventrust 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 Inventrust Properties Corp, you can compare the effects of market volatilities on Site Centers and Inventrust 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 Inventrust Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Inventrust Properties.
Diversification Opportunities for Site Centers and Inventrust Properties
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Site and Inventrust is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Inventrust Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventrust 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 Inventrust Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventrust Properties has no effect on the direction of Site Centers i.e., Site Centers and Inventrust Properties go up and down completely randomly.
Pair Corralation between Site Centers and Inventrust Properties
Given the investment horizon of 90 days Site Centers Corp is expected to generate 2.15 times more return on investment than Inventrust Properties. However, Site Centers is 2.15 times more volatile than Inventrust Properties Corp. It trades about 0.06 of its potential returns per unit of risk. Inventrust Properties Corp is currently generating about 0.07 per unit of risk. If you would invest 978.00 in Site Centers Corp on August 26, 2024 and sell it today you would earn a total of 632.00 from holding Site Centers Corp or generate 64.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Inventrust Properties Corp
Performance |
| Timeline |
| Site Centers Corp |
| Inventrust Properties |
Site Centers and Inventrust Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Inventrust Properties
The main advantage of trading using opposite Site Centers and Inventrust Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Inventrust 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 Inventrust Properties will offset losses from the drop in Inventrust 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 |
| Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Retail Opportunity Investments | Inventrust Properties vs. Acadia Realty Trust |
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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