Correlation Between Site Centers and Choice Properties

Can any of the company-specific risk be diversified away by investing in both Site 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 Site 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 Site Centers Corp and Choice Properties Real, you can compare the effects of market volatilities on Site 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 Site Centers with a short position of Choice Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Choice Properties.

Diversification Opportunities for Site Centers and Choice Properties

-0.25

Correlation Coefficient

Site Centers  Choice Properties

Very good diversification

The 3 months correlation between Site and Choice is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp 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 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 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 Site Centers i.e., Site Centers and Choice Properties go up and down completely randomly.

Pair Corralation between Site Centers and Choice Properties

Given the investment horizon of 90 days Site Centers Corp is expected to generate 1.3 times more return on investment than Choice Properties. However, Site Centers is 1.3 times more volatile than Choice Properties Real. It trades about 0.06 of its potential returns per unit of risk. Choice Properties Real is currently generating about 0.01 per unit of risk. If you would invest  1,028  in Site Centers Corp on September 13, 2024 and sell it today you would earn a total of  511.00  from holding Site Centers Corp or generate 49.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	67.74%
Values	Daily Returns

Site Centers Corp  vs.  Choice Properties Real

Site Centers Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Site Centers Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Site Centers exhibited solid returns over the last few months and may actually be approaching a breakup point.

Choice Properties Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Choice Properties Real has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Site Centers and Choice Properties

The main advantage of trading using opposite Site Centers and Choice Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site 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 Site Centers Corp 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..