Correlation Between Site Centers and Seritage Growth

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

Diversification Opportunities for Site Centers and Seritage Growth

0.37

Correlation Coefficient

Site Centers  Seritage Growth

Weak diversification

The 3 months correlation between Site and Seritage is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp and Seritage Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seritage Growth Prop 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 Seritage Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seritage Growth Prop has no effect on the direction of Site Centers i.e., Site Centers and Seritage Growth go up and down completely randomly.

Pair Corralation between Site Centers and Seritage Growth

Given the investment horizon of 90 days Site Centers Corp is expected to generate 1.02 times more return on investment than Seritage Growth. However, Site Centers is 1.02 times more volatile than Seritage Growth Properties. It trades about 0.06 of its potential returns per unit of risk. Seritage Growth Properties is currently generating about -0.1 per unit of risk. If you would invest  1,059  in Site Centers Corp on October 7, 2024 and sell it today you would earn a total of  455.00  from holding Site Centers Corp or generate 42.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Site Centers Corp  vs.  Seritage Growth Properties

Site Centers Corp

Risk-Adjusted Performance

0 of 100

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 February 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Seritage Growth Prop

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seritage Growth Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady 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 Seritage Growth

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

The idea behind Site Centers Corp and Seritage Growth Properties 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 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.