Correlation Between Site Centers and SP Funds

Can any of the company-specific risk be diversified away by investing in both Site Centers and SP Funds 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 SP Funds 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 SP Funds SP, you can compare the effects of market volatilities on Site Centers and SP Funds 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 SP Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and SP Funds.

Diversification Opportunities for Site Centers and SP Funds

0.08

Correlation Coefficient

Site Centers  SP Funds

Significant diversification

The 3 months correlation between Site and SPRE is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and SP Funds SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Funds SP 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 SP Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Funds SP has no effect on the direction of Site Centers i.e., Site Centers and SP Funds go up and down completely randomly.

Pair Corralation between Site Centers and SP Funds

Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the SP Funds. In addition to that, Site Centers is 1.52 times more volatile than SP Funds SP. It trades about -0.16 of its total potential returns per unit of risk. SP Funds SP is currently generating about 0.02 per unit of volatility. If you would invest  1,956  in SP Funds SP on December 27, 2024 and sell it today you would earn a total of  15.00  from holding SP Funds SP or generate 0.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Site Centers Corp  vs.  SP Funds SP

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.

SP Funds SP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SP Funds SP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, SP Funds is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Site Centers and SP Funds

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

The idea behind Site Centers Corp and SP Funds SP 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.