Correlation Between VistaREIT and SSI

Can any of the company-specific risk be diversified away by investing in both VistaREIT and SSI 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 VistaREIT and SSI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VistaREIT and SSI Group, you can compare the effects of market volatilities on VistaREIT and SSI 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 VistaREIT with a short position of SSI. Check out your portfolio center. Please also check ongoing floating volatility patterns of VistaREIT and SSI.

Diversification Opportunities for VistaREIT and SSI

-0.36

Correlation Coefficient

VistaREIT  SSI

Very good diversification

The 3 months correlation between VistaREIT and SSI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding VistaREIT and SSI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSI Group and VistaREIT 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 VistaREIT are associated (or correlated) with SSI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSI Group has no effect on the direction of VistaREIT i.e., VistaREIT and SSI go up and down completely randomly.

Pair Corralation between VistaREIT and SSI

Assuming the 90 days trading horizon VistaREIT is expected to generate 0.74 times more return on investment than SSI. However, VistaREIT is 1.34 times less risky than SSI. It trades about 0.23 of its potential returns per unit of risk. SSI Group is currently generating about 0.05 per unit of risk. If you would invest  174.00  in VistaREIT on September 23, 2024 and sell it today you would earn a total of  12.00  from holding VistaREIT or generate 6.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

VistaREIT  vs.  SSI Group

VistaREIT

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VistaREIT are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, VistaREIT may actually be approaching a critical reversion point that can send shares even higher in January 2025.

SSI Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SSI Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with VistaREIT and SSI

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

The idea behind VistaREIT and SSI Group 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.