Correlation Between Alexandria Real and Whitestone REIT
Can any of the company-specific risk be diversified away by investing in both Alexandria Real and Whitestone REIT 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 Alexandria Real and Whitestone REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexandria Real Estate and Whitestone REIT, you can compare the effects of market volatilities on Alexandria Real and Whitestone REIT 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 Alexandria Real with a short position of Whitestone REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexandria Real and Whitestone REIT.
Diversification Opportunities for Alexandria Real and Whitestone REIT
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alexandria and Whitestone is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Alexandria Real Estate and Whitestone REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitestone REIT and Alexandria Real 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 Alexandria Real Estate are associated (or correlated) with Whitestone REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitestone REIT has no effect on the direction of Alexandria Real i.e., Alexandria Real and Whitestone REIT go up and down completely randomly.
Pair Corralation between Alexandria Real and Whitestone REIT
Considering the 90-day investment horizon Alexandria Real Estate is expected to under-perform the Whitestone REIT. In addition to that, Alexandria Real is 1.37 times more volatile than Whitestone REIT. It trades about -0.02 of its total potential returns per unit of risk. Whitestone REIT is currently generating about 0.2 per unit of volatility. If you would invest 1,412 in Whitestone REIT on August 30, 2024 and sell it today you would earn a total of 76.00 from holding Whitestone REIT or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alexandria Real Estate vs. Whitestone REIT
Performance |
| Timeline |
| Alexandria Real Estate |
| Whitestone REIT |
Alexandria Real and Whitestone REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexandria Real and Whitestone REIT
The main advantage of trading using opposite Alexandria Real and Whitestone REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexandria Real position performs unexpectedly, Whitestone REIT 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 Whitestone REIT will offset losses from the drop in Whitestone REIT's long position.| Alexandria Real vs. Boston Properties | Alexandria Real vs. Douglas Emmett | Alexandria Real vs. Kilroy Realty Corp | Alexandria Real vs. Highwoods Properties |
| Whitestone REIT vs. Saul Centers | Whitestone REIT vs. Site Centers Corp | Whitestone REIT vs. Kite Realty Group | Whitestone REIT vs. Acadia Realty Trust |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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