Correlation Between Tanger Factory and SERITAGE GWTH
Can any of the company-specific risk be diversified away by investing in both Tanger Factory and SERITAGE GWTH 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 Tanger Factory and SERITAGE GWTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tanger Factory Outlet and SERITAGE GWTH PRA, you can compare the effects of market volatilities on Tanger Factory and SERITAGE GWTH 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 Tanger Factory with a short position of SERITAGE GWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and SERITAGE GWTH.
Diversification Opportunities for Tanger Factory and SERITAGE GWTH
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tanger and SERITAGE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and SERITAGE GWTH PRA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERITAGE GWTH PRA and Tanger Factory 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 Tanger Factory Outlet are associated (or correlated) with SERITAGE GWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERITAGE GWTH PRA has no effect on the direction of Tanger Factory i.e., Tanger Factory and SERITAGE GWTH go up and down completely randomly.
Pair Corralation between Tanger Factory and SERITAGE GWTH
Assuming the 90 days horizon Tanger Factory Outlet is expected to generate 0.53 times more return on investment than SERITAGE GWTH. However, Tanger Factory Outlet is 1.89 times less risky than SERITAGE GWTH. It trades about 0.11 of its potential returns per unit of risk. SERITAGE GWTH PRA is currently generating about -0.06 per unit of risk. If you would invest 1,968 in Tanger Factory Outlet on August 26, 2024 and sell it today you would earn a total of 1,489 from holding Tanger Factory Outlet or generate 75.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanger Factory Outlet vs. SERITAGE GWTH PRA
Performance |
| Timeline |
| Tanger Factory Outlet |
| SERITAGE GWTH PRA |
Tanger Factory and SERITAGE GWTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and SERITAGE GWTH
The main advantage of trading using opposite Tanger Factory and SERITAGE GWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory position performs unexpectedly, SERITAGE GWTH 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 GWTH will offset losses from the drop in SERITAGE GWTH's long position.| Tanger Factory vs. URW EO 05 | Tanger Factory vs. WFD Unibail Rodamco | Tanger Factory vs. Capital Counties Properties |
| SERITAGE GWTH vs. Vulcan Materials | SERITAGE GWTH vs. Compagnie Plastic Omnium | SERITAGE GWTH vs. EAGLE MATERIALS | SERITAGE GWTH vs. Avanos Medical |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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