Correlation Between Urban Edge and Site Centers
Can any of the company-specific risk be diversified away by investing in both Urban Edge and Site Centers 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 Urban Edge and Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Site Centers Corp, you can compare the effects of market volatilities on Urban Edge and Site Centers 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 Urban Edge with a short position of Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Site Centers.
Diversification Opportunities for Urban Edge and Site Centers
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Urban and Site is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Site Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Site Centers Corp and Urban Edge 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 Urban Edge Properties are associated (or correlated) with Site Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Site Centers Corp has no effect on the direction of Urban Edge i.e., Urban Edge and Site Centers go up and down completely randomly.
Pair Corralation between Urban Edge and Site Centers
Allowing for the 90-day total investment horizon Urban Edge is expected to generate 1.27 times less return on investment than Site Centers. In addition to that, Urban Edge is 1.01 times more volatile than Site Centers Corp. It trades about 0.01 of its total potential returns per unit of risk. Site Centers Corp is currently generating about 0.01 per unit of volatility. If you would invest 1,361 in Site Centers Corp on February 26, 2024 and sell it today you would earn a total of 57.00 from holding Site Centers Corp or generate 4.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Urban Edge Properties vs. Site Centers Corp
Performance |
Timeline |
Urban Edge Properties |
Site Centers Corp |
Urban Edge and Site Centers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Urban Edge and Site Centers
The main advantage of trading using opposite Urban Edge and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Site Centers 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 Site Centers will offset losses from the drop in Site Centers' long position.Urban Edge vs. Aquagold International | Urban Edge vs. Morningstar Unconstrained Allocation | Urban Edge vs. Thrivent High Yield | Urban Edge vs. Via Renewables |
Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
Check out your portfolio center.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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