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
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acadia and Wheeler is -0.09. 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 under-perform the Wheeler Real. But the stock apears to be less risky and, when comparing its historical volatility, Acadia Realty Trust is 2.59 times less risky than Wheeler Real. The stock trades about -0.12 of its potential returns per unit of risk. The Wheeler Real Estate is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Wheeler Real Estate on October 26, 2024 and sell it today you would earn a total of 115.00 from holding Wheeler Real Estate or generate 38.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| 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. Rithm Property Trust | Acadia Realty vs. Urban Edge Properties | Acadia Realty vs. Kite Realty Group | Acadia Realty vs. Site Centers Corp |
| Wheeler Real vs. Wheeler Real Estate | Wheeler Real vs. Site Centers Corp | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Brixmor Property |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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