Correlation Between Seritage Growth and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Seritage Growth and Slate Grocery 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 Slate Grocery 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 Slate Grocery REIT, you can compare the effects of market volatilities on Seritage Growth and Slate Grocery 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 Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seritage Growth and Slate Grocery.
Diversification Opportunities for Seritage Growth and Slate Grocery
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seritage and Slate is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Seritage Growth Properties and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT 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 Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Seritage Growth i.e., Seritage Growth and Slate Grocery go up and down completely randomly.
Pair Corralation between Seritage Growth and Slate Grocery
Assuming the 90 days trading horizon Seritage Growth Properties is expected to under-perform the Slate Grocery. In addition to that, Seritage Growth is 1.11 times more volatile than Slate Grocery REIT. It trades about -0.04 of its total potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.11 per unit of volatility. If you would invest 955.00 in Slate Grocery REIT on November 2, 2024 and sell it today you would earn a total of 25.00 from holding Slate Grocery REIT or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seritage Growth Properties vs. Slate Grocery REIT
Performance |
| Timeline |
| Seritage Growth Prop |
| Slate Grocery REIT |
Seritage Growth and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seritage Growth and Slate Grocery
The main advantage of trading using opposite Seritage Growth and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seritage Growth position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| Seritage Growth vs. Slate Grocery REIT | Seritage Growth vs. Rithm Property Trust | Seritage Growth vs. Riocan REIT | Seritage Growth vs. Smart REIT |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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