Correlation Between Site Centers and Primaris Real
Can any of the company-specific risk be diversified away by investing in both Site Centers and Primaris Real 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 Primaris Real 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 Primaris Real Estate, you can compare the effects of market volatilities on Site Centers and Primaris Real 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 Primaris Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Primaris Real.
Diversification Opportunities for Site Centers and Primaris Real
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Site and Primaris is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Primaris Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Real Estate 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 Primaris Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Real Estate has no effect on the direction of Site Centers i.e., Site Centers and Primaris Real go up and down completely randomly.
Pair Corralation between Site Centers and Primaris Real
Given the investment horizon of 90 days Site Centers Corp is expected to generate 2.6 times more return on investment than Primaris Real. However, Site Centers is 2.6 times more volatile than Primaris Real Estate. It trades about -0.11 of its potential returns per unit of risk. Primaris Real Estate is currently generating about -0.37 per unit of risk. If you would invest 1,595 in Site Centers Corp on September 1, 2024 and sell it today you would lose (43.00) from holding Site Centers Corp or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Primaris Real Estate
Performance |
| Timeline |
| Site Centers Corp |
| Primaris Real Estate |
Site Centers and Primaris Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Primaris Real
The main advantage of trading using opposite Site Centers and Primaris Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Primaris Real 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 Primaris Real will offset losses from the drop in Primaris Real'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 |
| Primaris Real vs. Slate Grocery REIT | Primaris Real vs. Seritage Growth Properties | Primaris Real vs. Smart REIT | Primaris Real vs. Riocan REIT |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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