Correlation Between Slate Grocery and Seritage Growth
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Seritage Growth 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 Seritage Growth 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 Seritage Growth Properties, you can compare the effects of market volatilities on Slate Grocery and Seritage Growth 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 Seritage Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Seritage Growth.
Diversification Opportunities for Slate Grocery and Seritage Growth
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and Seritage is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Seritage Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seritage Growth Prop 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 Seritage Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seritage Growth Prop has no effect on the direction of Slate Grocery i.e., Slate Grocery and Seritage Growth go up and down completely randomly.
Pair Corralation between Slate Grocery and Seritage Growth
Assuming the 90 days horizon Slate Grocery REIT is expected to generate 0.53 times more return on investment than Seritage Growth. However, Slate Grocery REIT is 1.89 times less risky than Seritage Growth. It trades about 0.12 of its potential returns per unit of risk. Seritage Growth Properties is currently generating about 0.01 per unit of risk. If you would invest 985.00 in Slate Grocery REIT on November 27, 2024 and sell it today you would earn a total of 28.00 from holding Slate Grocery REIT or generate 2.84% 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. Seritage Growth Properties
Performance |
| Timeline |
| Slate Grocery REIT |
| Seritage Growth Prop |
Slate Grocery and Seritage Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Seritage Growth
The main advantage of trading using opposite Slate Grocery and Seritage Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Seritage Growth 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 Seritage Growth will offset losses from the drop in Seritage Growth's long position.| Slate Grocery vs. Choice Properties Real | Slate Grocery vs. Firm Capital Property | Slate Grocery vs. Riocan REIT | Slate Grocery vs. Smart REIT |
| Seritage Growth vs. Site Centers Corp | Seritage Growth vs. Saul Centers | Seritage Growth vs. Acadia Realty Trust | Seritage Growth vs. Kite Realty Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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