Correlation Between Site Centers and SPDR Dow
Can any of the company-specific risk be diversified away by investing in both Site Centers and SPDR Dow 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 SPDR Dow 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 SPDR Dow Jones, you can compare the effects of market volatilities on Site Centers and SPDR Dow 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 SPDR Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and SPDR Dow.
Diversification Opportunities for Site Centers and SPDR Dow
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Site and SPDR is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and SPDR Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Dow Jones 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 SPDR Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Dow Jones has no effect on the direction of Site Centers i.e., Site Centers and SPDR Dow go up and down completely randomly.
Pair Corralation between Site Centers and SPDR Dow
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the SPDR Dow. In addition to that, Site Centers is 1.56 times more volatile than SPDR Dow Jones. It trades about -0.17 of its total potential returns per unit of risk. SPDR Dow Jones is currently generating about 0.11 per unit of volatility. If you would invest 10,551 in SPDR Dow Jones on August 29, 2024 and sell it today you would earn a total of 234.00 from holding SPDR Dow Jones or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. SPDR Dow Jones
Performance |
| Timeline |
| Site Centers Corp |
| SPDR Dow Jones |
Site Centers and SPDR Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and SPDR Dow
The main advantage of trading using opposite Site Centers and SPDR Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, SPDR Dow 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 SPDR Dow will offset losses from the drop in SPDR Dow'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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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