Correlation Between Seritage Growth and Phillips Edison
Can any of the company-specific risk be diversified away by investing in both Seritage Growth and Phillips Edison 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 Seritage Growth and Phillips Edison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seritage Growth Properties and Phillips Edison Co, you can compare the effects of market volatilities on Seritage Growth and Phillips Edison 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 Seritage Growth with a short position of Phillips Edison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seritage Growth and Phillips Edison.
Diversification Opportunities for Seritage Growth and Phillips Edison
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seritage and Phillips is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Seritage Growth Properties and Phillips Edison Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips Edison and Seritage Growth 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 Seritage Growth Properties are associated (or correlated) with Phillips Edison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips Edison has no effect on the direction of Seritage Growth i.e., Seritage Growth and Phillips Edison go up and down completely randomly.
Pair Corralation between Seritage Growth and Phillips Edison
Assuming the 90 days trading horizon Seritage Growth Properties is expected to under-perform the Phillips Edison. In addition to that, Seritage Growth is 1.33 times more volatile than Phillips Edison Co. It trades about -0.01 of its total potential returns per unit of risk. Phillips Edison Co is currently generating about 0.44 per unit of volatility. If you would invest 3,658 in Phillips Edison Co on August 28, 2024 and sell it today you would earn a total of 285.00 from holding Phillips Edison Co or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seritage Growth Properties vs. Phillips Edison Co
Performance |
| Timeline |
| Seritage Growth Prop |
| Phillips Edison |
Seritage Growth and Phillips Edison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seritage Growth and Phillips Edison
The main advantage of trading using opposite Seritage Growth and Phillips Edison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seritage Growth position performs unexpectedly, Phillips Edison 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 Phillips Edison will offset losses from the drop in Phillips Edison's long position.| Seritage Growth vs. Slate Grocery REIT | Seritage Growth vs. Riocan REIT | Seritage Growth vs. Smart REIT | Seritage Growth vs. Plaza Retail REIT |
| Phillips Edison vs. Site Centers Corp | Phillips Edison vs. Retail Opportunity Investments | Phillips Edison vs. Urban Edge Properties | Phillips Edison vs. Netstreit Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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