Correlation Between Seritage Growth and Mapletree Commercial
Can any of the company-specific risk be diversified away by investing in both Seritage Growth and Mapletree Commercial 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 Mapletree Commercial 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 Mapletree Commercial Trust, you can compare the effects of market volatilities on Seritage Growth and Mapletree Commercial 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 Mapletree Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seritage Growth and Mapletree Commercial.
Diversification Opportunities for Seritage Growth and Mapletree Commercial
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seritage and Mapletree is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Seritage Growth Properties and Mapletree Commercial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Commercial 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 Mapletree Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Commercial has no effect on the direction of Seritage Growth i.e., Seritage Growth and Mapletree Commercial go up and down completely randomly.
Pair Corralation between Seritage Growth and Mapletree Commercial
Considering the 90-day investment horizon Seritage Growth Properties is expected to under-perform the Mapletree Commercial. In addition to that, Seritage Growth is 1.27 times more volatile than Mapletree Commercial Trust. It trades about -0.08 of its total potential returns per unit of risk. Mapletree Commercial Trust is currently generating about 0.02 per unit of volatility. If you would invest 87.00 in Mapletree Commercial Trust on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Mapletree Commercial Trust or generate 4.6% 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. Mapletree Commercial Trust
Performance |
| Timeline |
| Seritage Growth Prop |
| Mapletree Commercial |
Seritage Growth and Mapletree Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seritage Growth and Mapletree Commercial
The main advantage of trading using opposite Seritage Growth and Mapletree Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seritage Growth position performs unexpectedly, Mapletree Commercial 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 Mapletree Commercial will offset losses from the drop in Mapletree Commercial's long position.| Seritage Growth vs. Site Centers Corp | Seritage Growth vs. Saul Centers | Seritage Growth vs. Acadia Realty Trust | Seritage Growth vs. Kite Realty Group |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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