Correlation Between Saul Centers and Choice Properties

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

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

Diversification Opportunities for Saul Centers and Choice Properties

0.44

Correlation Coefficient

Saul Centers  Choice Properties

Very weak diversification

The 3 months correlation between Saul and Choice is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers and Choice Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Properties Real and Saul Centers 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 Saul Centers are associated (or correlated) with Choice Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Properties Real has no effect on the direction of Saul Centers i.e., Saul Centers and Choice Properties go up and down completely randomly.

Pair Corralation between Saul Centers and Choice Properties

Considering the 90-day investment horizon Saul Centers is expected to under-perform the Choice Properties. But the stock apears to be less risky and, when comparing its historical volatility, Saul Centers is 5.2 times less risky than Choice Properties. The stock trades about -0.05 of its potential returns per unit of risk. The Choice Properties Real is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  932.00  in Choice Properties Real on December 19, 2024 and sell it today you would earn a total of  31.00  from holding Choice Properties Real or generate 3.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	86.44%
Values	Daily Returns

Saul Centers  vs.  Choice Properties Real

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.

Choice Properties Real

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Choice Properties Real are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Choice Properties reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Saul Centers and Choice Properties

The main advantage of trading using opposite Saul Centers and Choice Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saul Centers position performs unexpectedly, Choice Properties 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 Choice Properties will offset losses from the drop in Choice Properties' long position.

The idea behind Saul Centers and Choice Properties Real 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..