Correlation Between Site Centers and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Site Centers and SITE Centers 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 SITE Centers 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 SITE Centers Corp, you can compare the effects of market volatilities on Site Centers and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and SITE Centers.
Diversification Opportunities for Site Centers and SITE Centers
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Site and SITE is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers Corp 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Site Centers i.e., Site Centers and SITE Centers go up and down completely randomly.
Pair Corralation between Site Centers and SITE Centers
Given the investment horizon of 90 days Site Centers Corp is expected to generate 6.78 times more return on investment than SITE Centers. However, Site Centers is 6.78 times more volatile than SITE Centers Corp. It trades about 0.1 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.19 per unit of risk. If you would invest 1,155 in Site Centers Corp on September 12, 2024 and sell it today you would earn a total of 382.00 from holding Site Centers Corp or generate 33.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Site Centers Corp vs. SITE Centers Corp
Performance |
| Timeline |
| Site Centers Corp |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Site Centers and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and SITE Centers
The main advantage of trading using opposite Site Centers and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' 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 |
| SITE Centers vs. Site Centers Corp | SITE Centers vs. Saul Centers | SITE Centers vs. Acadia Realty Trust | SITE Centers vs. Kite Realty Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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