Correlation Between Slate Grocery and Site Centers
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Site 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 Site 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 Site Centers Corp, you can compare the effects of market volatilities on Slate Grocery and Site 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 Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Site Centers.
Diversification Opportunities for Slate Grocery and Site Centers
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Slate and Site is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Site Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Site Centers Corp 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 Site Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Site Centers Corp has no effect on the direction of Slate Grocery i.e., Slate Grocery and Site Centers go up and down completely randomly.
Pair Corralation between Slate Grocery and Site Centers
Assuming the 90 days horizon Slate Grocery is expected to generate 5.59 times less return on investment than Site Centers. But when comparing it to its historical volatility, Slate Grocery REIT is 1.67 times less risky than Site Centers. It trades about 0.02 of its potential returns per unit of risk. Site Centers Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 820.00 in Site Centers Corp on August 24, 2024 and sell it today you would earn a total of 789.00 from holding Site Centers Corp or generate 96.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Slate Grocery REIT vs. Site Centers Corp
Performance |
| Timeline |
| Slate Grocery REIT |
| Site Centers Corp |
Slate Grocery and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Site Centers
The main advantage of trading using opposite Slate Grocery and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Site 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 Site Centers will offset losses from the drop in Site Centers' long position.| Slate Grocery vs. Smart REIT | Slate Grocery vs. Phillips Edison Co | Slate Grocery vs. Choice Properties Real | Slate Grocery vs. Simon Property Group |
| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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