Correlation Between Acadia Realty and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Acadia Realty and Wheeler Real 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 Acadia Realty and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadia Realty Trust and Wheeler Real Estate, you can compare the effects of market volatilities on Acadia Realty and Wheeler Real 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 Acadia Realty with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and Wheeler Real.
Diversification Opportunities for Acadia Realty and Wheeler Real
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acadia and Wheeler is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate and Acadia Realty 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 Acadia Realty Trust are associated (or correlated) with Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Acadia Realty i.e., Acadia Realty and Wheeler Real go up and down completely randomly.
Pair Corralation between Acadia Realty and Wheeler Real
Considering the 90-day investment horizon Acadia Realty Trust is expected to generate 0.21 times more return on investment than Wheeler Real. However, Acadia Realty Trust is 4.72 times less risky than Wheeler Real. It trades about 0.2 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.87 per unit of risk. If you would invest 2,460 in Acadia Realty Trust on August 29, 2024 and sell it today you would earn a total of 103.00 from holding Acadia Realty Trust or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. Wheeler Real Estate
Performance |
| Timeline |
| Acadia Realty Trust |
| Wheeler Real Estate |
Acadia Realty and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and Wheeler Real
The main advantage of trading using opposite Acadia Realty and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty position performs unexpectedly, Wheeler Real 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 Wheeler Real will offset losses from the drop in Wheeler Real's long position.| Acadia Realty vs. CBL Associates Properties | Acadia Realty vs. Cedar Realty Trust | Acadia Realty vs. Simon Property Group | Acadia Realty vs. Realty Income |
| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Simon Property Group | Wheeler Real vs. Realty Income |
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.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |