Correlation Between Cedar Realty and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Cedar 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 Cedar 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 Cedar Realty Trust and Wheeler Real Estate, you can compare the effects of market volatilities on Cedar 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 Cedar Realty with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Wheeler Real.
Diversification Opportunities for Cedar Realty and Wheeler Real
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cedar and Wheeler is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cedar 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 Cedar 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 Cedar 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 Cedar Realty i.e., Cedar Realty and Wheeler Real go up and down completely randomly.
Pair Corralation between Cedar Realty and Wheeler Real
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.14 times more return on investment than Wheeler Real. However, Cedar Realty Trust is 7.05 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 -0.04 per unit of risk. If you would invest 1,243 in Cedar Realty Trust on November 2, 2024 and sell it today you would earn a total of 371.00 from holding Cedar Realty Trust or generate 29.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Wheeler Real Estate
Performance |
| Timeline |
| Cedar Realty Trust |
| Wheeler Real Estate |
Cedar Realty and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Wheeler Real
The main advantage of trading using opposite Cedar Realty and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar 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.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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