Correlation Between Site Centers and City Office
Can any of the company-specific risk be diversified away by investing in both Site Centers and City Office 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 Site Centers and City Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Site Centers Corp and City Office, you can compare the effects of market volatilities on Site Centers and City Office 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 Site Centers with a short position of City Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and City Office.
Diversification Opportunities for Site Centers and City Office
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Site and City is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and City Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Office and Site 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 Site Centers Corp are associated (or correlated) with City Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Office has no effect on the direction of Site Centers i.e., Site Centers and City Office go up and down completely randomly.
Pair Corralation between Site Centers and City Office
Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the City Office. But the etf apears to be less risky and, when comparing its historical volatility, Site Centers Corp is 1.42 times less risky than City Office. The etf trades about -0.12 of its potential returns per unit of risk. The City Office is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 553.00 in City Office on December 2, 2024 and sell it today you would lose (27.00) from holding City Office or give up 4.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Site Centers Corp vs. City Office
Performance |
Timeline |
Site Centers Corp |
City Office |
Site Centers and City Office Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Site Centers and City Office
The main advantage of trading using opposite Site Centers and City Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers position performs unexpectedly, City Office 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 City Office will offset losses from the drop in City Office's long position.Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Inventrust Properties Corp |
City Office vs. Hudson Pacific Properties | City Office vs. Piedmont Office Realty | City Office vs. Office Properties Income | City Office vs. Kilroy Realty Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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