Correlation Between Saul Centers and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Saul Centers 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 Saul Centers and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saul Centers and Wheeler Real Estate, you can compare the effects of market volatilities on Saul Centers 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 Saul Centers with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saul Centers and Wheeler Real.
Diversification Opportunities for Saul Centers and Wheeler Real
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saul and Wheeler is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers 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 Saul Centers 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 Saul Centers 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 Saul Centers i.e., Saul Centers and Wheeler Real go up and down completely randomly.
Pair Corralation between Saul Centers and Wheeler Real
Considering the 90-day investment horizon Saul Centers is expected to generate 0.14 times more return on investment than Wheeler Real. However, Saul Centers is 7.15 times less risky than Wheeler Real. It trades about -0.03 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.52 per unit of risk. If you would invest 3,704 in Saul Centers on November 28, 2024 and sell it today you would lose (28.00) from holding Saul Centers or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saul Centers vs. Wheeler Real Estate
Performance |
| Timeline |
| Saul Centers |
| Wheeler Real Estate |
Saul Centers and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saul Centers and Wheeler Real
The main advantage of trading using opposite Saul Centers and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saul Centers 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.| Saul Centers vs. Urban Edge Properties | Saul Centers vs. Rithm Property Trust | Saul Centers vs. Site Centers Corp | Saul Centers vs. Kite Realty Group |
| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Macerich Company | Wheeler Real vs. Simon Property Group |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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