Correlation Between Site Centers and Invesco KBW
Can any of the company-specific risk be diversified away by investing in both Site Centers and Invesco KBW 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 Invesco KBW 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 Invesco KBW Premium, you can compare the effects of market volatilities on Site Centers and Invesco KBW 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 Invesco KBW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Invesco KBW.
Diversification Opportunities for Site Centers and Invesco KBW
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Site and Invesco is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Invesco KBW Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco KBW Premium 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 Invesco KBW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco KBW Premium has no effect on the direction of Site Centers i.e., Site Centers and Invesco KBW go up and down completely randomly.
Pair Corralation between Site Centers and Invesco KBW
Given the investment horizon of 90 days Site Centers Corp is expected to generate 1.72 times more return on investment than Invesco KBW. However, Site Centers is 1.72 times more volatile than Invesco KBW Premium. It trades about 0.06 of its potential returns per unit of risk. Invesco KBW Premium is currently generating about 0.02 per unit of risk. If you would invest 820.00 in Site Centers Corp on August 24, 2024 and sell it today you would earn a total of 789.00 from holding Site Centers Corp or generate 96.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Site Centers Corp vs. Invesco KBW Premium
Performance |
| Timeline |
| Site Centers Corp |
| Invesco KBW Premium |
Site Centers and Invesco KBW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Invesco KBW
The main advantage of trading using opposite Site Centers and Invesco KBW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Invesco KBW 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 Invesco KBW will offset losses from the drop in Invesco KBW'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 |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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