Correlation Between Modiv and Saul Centers

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

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

Diversification Opportunities for Modiv and Saul Centers

0.59

Correlation Coefficient

Modiv  Saul Centers

Very weak diversification

The 3 months correlation between Modiv and Saul is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Modiv Inc and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Modiv 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 Modiv Inc 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 Modiv i.e., Modiv and Saul Centers go up and down completely randomly.

Pair Corralation between Modiv and Saul Centers

Assuming the 90 days trading horizon Modiv is expected to generate 1.6 times less return on investment than Saul Centers. But when comparing it to its historical volatility, Modiv Inc is 1.33 times less risky than Saul Centers. It trades about 0.06 of its potential returns per unit of risk. Saul Centers is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,114  in Saul Centers on July 5, 2025 and sell it today you would earn a total of  126.00  from holding Saul Centers or generate 5.96% return on investment over 90 days.

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

Modiv Inc  vs.  Saul Centers

Modiv Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Modiv Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Modiv is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Saul Centers

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Saul Centers are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Saul Centers is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Modiv and Saul Centers

The main advantage of trading using opposite Modiv and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modiv 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 Modiv Inc 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.