Correlation Between Site Centers and Real Estate
Can any of the company-specific risk be diversified away by investing in both Site Centers and Real Estate 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 Real Estate 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 The Real Estate, you can compare the effects of market volatilities on Site Centers and Real Estate 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 Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Real Estate.
Diversification Opportunities for Site Centers and Real Estate
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Site and Real is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and The Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate has no effect on the direction of Site Centers i.e., Site Centers and Real Estate go up and down completely randomly.
Pair Corralation between Site Centers and Real Estate
Given the investment horizon of 90 days Site Centers Corp is expected to generate 3.07 times more return on investment than Real Estate. However, Site Centers is 3.07 times more volatile than The Real Estate. It trades about 0.08 of its potential returns per unit of risk. The Real Estate is currently generating about 0.09 per unit of risk. If you would invest 920.00 in Site Centers Corp on August 24, 2024 and sell it today you would earn a total of 689.00 from holding Site Centers Corp or generate 74.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Site Centers Corp vs. The Real Estate
Performance |
| Timeline |
| Site Centers Corp |
| Real Estate |
Site Centers and Real Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Real Estate
The main advantage of trading using opposite Site Centers and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate'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 |
| Real Estate vs. Vanguard Real Estate | Real Estate vs. Howard Hughes | Real Estate vs. Site Centers Corp | Real Estate vs. iShares Real Estate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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