Correlation Between Rithm Property and Saul Centers

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

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

Diversification Opportunities for Rithm Property and Saul Centers

-0.08

Correlation Coefficient

Rithm Property  Saul Centers

Good diversification

The 3 months correlation between Rithm and Saul is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Rithm Property 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 Rithm Property Trust are associated (or correlated) with Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Rithm Property i.e., Rithm Property and Saul Centers go up and down completely randomly.

Pair Corralation between Rithm Property and Saul Centers

Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Saul Centers. In addition to that, Rithm Property is 1.48 times more volatile than Saul Centers. It trades about -0.13 of its total potential returns per unit of risk. Saul Centers is currently generating about 0.03 per unit of volatility. If you would invest  4,023  in Saul Centers on September 14, 2024 and sell it today you would earn a total of  19.00  from holding Saul Centers or generate 0.47% return on investment over 90 days.

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

Rithm Property Trust  vs.  Saul Centers

Rithm Property Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rithm Property Trust 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 basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Saul Centers

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Saul Centers are ranked lower than 1 (%) 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.

Pair Trading with Rithm Property and Saul Centers

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

The idea behind Rithm Property Trust and Saul Centers 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.