Correlation Between Phillips Edison and Site Centers

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

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

Diversification Opportunities for Phillips Edison and Site Centers

0.5

Correlation Coefficient

Phillips Edison  Site Centers

Very weak diversification

The 3 months correlation between Phillips and Site is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Phillips Edison Co 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 Phillips Edison 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 Phillips Edison Co 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 Phillips Edison i.e., Phillips Edison and Site Centers go up and down completely randomly.

Pair Corralation between Phillips Edison and Site Centers

Given the investment horizon of 90 days Phillips Edison Co is expected to generate 0.79 times more return on investment than Site Centers. However, Phillips Edison Co is 1.27 times less risky than Site Centers. It trades about -0.09 of its potential returns per unit of risk. Site Centers Corp is currently generating about -0.19 per unit of risk. If you would invest  3,741  in Phillips Edison Co on December 21, 2024 and sell it today you would lose (267.00) from holding Phillips Edison Co or give up 7.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Phillips Edison Co  vs.  Site Centers Corp

Phillips Edison

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phillips Edison Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm 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 uncertain performance in the last few months, the Etf's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with Phillips Edison and Site Centers

The main advantage of trading using opposite Phillips Edison and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phillips Edison 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 Phillips Edison Co 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.