Correlation Between Alexanders and Saul Centers

Can any of the company-specific risk be diversified away by investing in both Alexanders 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 Alexanders and Saul Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alexanders and Saul Centers, you can compare the effects of market volatilities on Alexanders 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 Alexanders with a short position of Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexanders and Saul Centers.

Diversification Opportunities for Alexanders and Saul Centers

-0.29

Correlation Coefficient

Alexanders  Saul Centers

Very good diversification

The 3 months correlation between Alexanders and Saul is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Alexanders and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Alexanders 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 Alexanders 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 Alexanders i.e., Alexanders and Saul Centers go up and down completely randomly.

Pair Corralation between Alexanders and Saul Centers

Considering the 90-day investment horizon Alexanders is expected to generate 1.33 times more return on investment than Saul Centers. However, Alexanders is 1.33 times more volatile than Saul Centers. It trades about 0.09 of its potential returns per unit of risk. Saul Centers is currently generating about -0.07 per unit of risk. If you would invest  19,557  in Alexanders on December 28, 2024 and sell it today you would earn a total of  1,551  from holding Alexanders or generate 7.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alexanders  vs.  Saul Centers

Alexanders

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alexanders are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, Alexanders may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Saul Centers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Saul Centers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Saul Centers is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Alexanders and Saul Centers

The main advantage of trading using opposite Alexanders and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexanders 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.

The idea behind Alexanders and Saul Centers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.