Correlation Between Saul Centers and Inventrust Properties

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

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

Diversification Opportunities for Saul Centers and Inventrust Properties

0.17

Correlation Coefficient

Saul Centers  Inventrust Properties

Average diversification

The 3 months correlation between Saul and Inventrust is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers and Inventrust Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventrust Properties and Saul 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 Saul Centers are associated (or correlated) with Inventrust Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventrust Properties has no effect on the direction of Saul Centers i.e., Saul Centers and Inventrust Properties go up and down completely randomly.

Pair Corralation between Saul Centers and Inventrust Properties

Considering the 90-day investment horizon Saul Centers is expected to generate 1.6 times less return on investment than Inventrust Properties. In addition to that, Saul Centers is 1.18 times more volatile than Inventrust Properties Corp. It trades about 0.14 of its total potential returns per unit of risk. Inventrust Properties Corp is currently generating about 0.26 per unit of volatility. If you would invest  2,943  in Inventrust Properties Corp on August 30, 2024 and sell it today you would earn a total of  187.00  from holding Inventrust Properties Corp or generate 6.35% return on investment over 90 days.

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

Saul Centers  vs.  Inventrust Properties Corp

Saul Centers

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Saul Centers are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Saul Centers is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Inventrust Properties

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inventrust Properties Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Inventrust Properties may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Saul Centers and Inventrust Properties

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

The idea behind Saul Centers and Inventrust Properties Corp 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.