Correlation Between Slate Grocery and Saul Centers
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Saul Centers 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 Slate Grocery and Saul Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Saul Centers, you can compare the effects of market volatilities on Slate Grocery and Saul Centers 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 Slate Grocery with a short position of Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Saul Centers.
Diversification Opportunities for Slate Grocery and Saul Centers
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and Saul is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Slate Grocery i.e., Slate Grocery and Saul Centers go up and down completely randomly.
Pair Corralation between Slate Grocery and Saul Centers
Assuming the 90 days horizon Slate Grocery REIT is expected to generate 1.11 times more return on investment than Saul Centers. However, Slate Grocery is 1.11 times more volatile than Saul Centers. It trades about 0.32 of its potential returns per unit of risk. Saul Centers is currently generating about 0.19 per unit of risk. If you would invest 972.00 in Slate Grocery REIT on September 1, 2024 and sell it today you would earn a total of 94.00 from holding Slate Grocery REIT or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Saul Centers
Performance |
| Timeline |
| Slate Grocery REIT |
| Saul Centers |
Slate Grocery and Saul Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Saul Centers
The main advantage of trading using opposite Slate Grocery and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Saul Centers 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 Saul Centers will offset losses from the drop in Saul Centers' long position.| Slate Grocery vs. Choice Properties Real | Slate Grocery vs. CT Real Estate | Slate Grocery vs. Firm Capital Property | Slate Grocery vs. Riocan REIT |
| Saul Centers vs. Urban Edge Properties | Saul Centers vs. Site Centers Corp | Saul Centers vs. Kite Realty Group | Saul Centers vs. Acadia Realty Trust |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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