Correlation Between Inventrust Properties and Site Centers

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

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

Diversification Opportunities for Inventrust Properties and Site Centers

0.48

Correlation Coefficient

Inventrust Properties  Site Centers

Very weak diversification

The 3 months correlation between Inventrust and Site is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp 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 Inventrust Properties 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 Inventrust Properties Corp 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 Inventrust Properties i.e., Inventrust Properties and Site Centers go up and down completely randomly.

Pair Corralation between Inventrust Properties and Site Centers

Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 0.76 times more return on investment than Site Centers. However, Inventrust Properties Corp is 1.31 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 -0.11 per unit of risk. If you would invest  2,931  in Inventrust Properties Corp on December 1, 2024 and sell it today you would earn a total of  47.00  from holding Inventrust Properties Corp or generate 1.6% return on investment over 90 days.

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

Inventrust Properties Corp  vs.  Site Centers Corp

Inventrust Properties

Risk-Adjusted Performance

Very Weak

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

Site Centers Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Site Centers Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with Inventrust Properties and Site Centers

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

The idea behind Inventrust Properties Corp and Site Centers Corp 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.