Correlation Between Site Centers and Macerich
Can any of the company-specific risk be diversified away by investing in both Site Centers and Macerich 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 Macerich 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 Macerich Company, you can compare the effects of market volatilities on Site Centers and Macerich 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 Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Macerich.
Diversification Opportunities for Site Centers and Macerich
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Site and Macerich is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Macerich Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich 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 Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of Site Centers i.e., Site Centers and Macerich go up and down completely randomly.
Pair Corralation between Site Centers and Macerich
Given the investment horizon of 90 days Site Centers is expected to generate 1.05 times less return on investment than Macerich. In addition to that, Site Centers is 1.02 times more volatile than Macerich Company. It trades about 0.06 of its total potential returns per unit of risk. Macerich Company is currently generating about 0.06 per unit of volatility. If you would invest 1,145 in Macerich Company on August 29, 2024 and sell it today you would earn a total of 970.00 from holding Macerich Company or generate 84.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Macerich Company
Performance |
| Timeline |
| Site Centers Corp |
| Macerich |
Site Centers and Macerich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Macerich
The main advantage of trading using opposite Site Centers and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich'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 |
| Macerich vs. CBL Associates Properties | Macerich vs. Cedar Realty Trust | Macerich vs. Simon Property Group | Macerich vs. Realty Income |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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