Correlation Between Site Centers and Riocan REIT
Can any of the company-specific risk be diversified away by investing in both Site Centers and Riocan REIT 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 Riocan REIT 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 Riocan REIT, you can compare the effects of market volatilities on Site Centers and Riocan REIT 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 Riocan REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Riocan REIT.
Diversification Opportunities for Site Centers and Riocan REIT
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Site and Riocan is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Riocan REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riocan REIT 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 Riocan REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riocan REIT has no effect on the direction of Site Centers i.e., Site Centers and Riocan REIT go up and down completely randomly.
Pair Corralation between Site Centers and Riocan REIT
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the Riocan REIT. In addition to that, Site Centers is 1.49 times more volatile than Riocan REIT. It trades about -0.17 of its total potential returns per unit of risk. Riocan REIT is currently generating about -0.03 per unit of volatility. If you would invest 1,390 in Riocan REIT on August 28, 2024 and sell it today you would lose (11.00) from holding Riocan REIT or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Riocan REIT
Performance |
| Timeline |
| Site Centers Corp |
| Riocan REIT |
Site Centers and Riocan REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Riocan REIT
The main advantage of trading using opposite Site Centers and Riocan REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Riocan REIT 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 Riocan REIT will offset losses from the drop in Riocan REIT'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 |
| Riocan REIT vs. Choice Properties Real | Riocan REIT vs. CT Real Estate | Riocan REIT vs. Firm Capital Property | Riocan REIT vs. Slate Grocery 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |