Correlation Between Klépierre and Saul Centers

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

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

Diversification Opportunities for Klépierre and Saul Centers

0.58

Correlation Coefficient

Klépierre  Saul Centers

Very weak diversification

The 3 months correlation between Klépierre and Saul is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Klpierre SA and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Klépierre 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 Klpierre SA 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 Klépierre i.e., Klépierre and Saul Centers go up and down completely randomly.

Pair Corralation between Klépierre and Saul Centers

Assuming the 90 days horizon Klépierre is expected to generate 2.1 times less return on investment than Saul Centers. In addition to that, Klépierre is 1.36 times more volatile than Saul Centers. It trades about 0.04 of its total potential returns per unit of risk. Saul Centers is currently generating about 0.11 per unit of volatility. If you would invest  2,008  in Saul Centers on May 5, 2025 and sell it today you would earn a total of  179.00  from holding Saul Centers or generate 8.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Klpierre SA  vs.  Saul Centers

Klpierre SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Klpierre SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Klépierre is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Saul Centers

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saul Centers are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Saul Centers may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Klépierre and Saul Centers

The main advantage of trading using opposite Klépierre and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klépierre 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 Klpierre SA 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..