Correlation Between Site Centers and Global X
Can any of the company-specific risk be diversified away by investing in both Site Centers and Global X 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 Global X 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 Global X SuperDividend, you can compare the effects of market volatilities on Site Centers and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Global X.
Diversification Opportunities for Site Centers and Global X
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Site and Global is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Global X SuperDividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SuperDividend 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X SuperDividend has no effect on the direction of Site Centers i.e., Site Centers and Global X go up and down completely randomly.
Pair Corralation between Site Centers and Global X
Given the investment horizon of 90 days Site Centers Corp is expected to generate 3.45 times more return on investment than Global X. However, Site Centers is 3.45 times more volatile than Global X SuperDividend. It trades about 0.08 of its potential returns per unit of risk. Global X SuperDividend is currently generating about 0.06 per unit of risk. If you would invest 930.00 in Site Centers Corp on August 26, 2024 and sell it today you would earn a total of 680.00 from holding Site Centers Corp or generate 73.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Global X SuperDividend
Performance |
| Timeline |
| Site Centers Corp |
| Global X SuperDividend |
Site Centers and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Global X
The main advantage of trading using opposite Site Centers and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X'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 |
| Global X vs. Global X SuperDividend | Global X vs. Invesco KBW Premium | Global X vs. Global X SuperDividend | Global X vs. Invesco KBW High |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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