Correlation Between Site Centers and Global X

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

Diversification Opportunities for Site Centers and Global X

-0.58

Correlation Coefficient

Site Centers  Global X

Excellent diversification

The 3 months correlation between Site and Global is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Global X SuperDividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SuperDividend 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X SuperDividend has no effect on the direction of Site Centers i.e., Site Centers and Global X go up and down completely randomly.

Pair Corralation between Site Centers and Global X

Given the investment horizon of 90 days Site Centers Corp is expected to under-perform the Global X. In addition to that, Site Centers is 1.88 times more volatile than Global X SuperDividend. It trades about -0.07 of its total potential returns per unit of risk. Global X SuperDividend is currently generating about -0.13 per unit of volatility. If you would invest  2,094  in Global X SuperDividend on September 19, 2024 and sell it today you would lose (30.00) from holding Global X SuperDividend or give up 1.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Site Centers Corp  vs.  Global X SuperDividend

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.

Global X SuperDividend

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global X SuperDividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Site Centers and Global X

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

The idea behind Site Centers Corp and Global X SuperDividend 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.