Correlation Between Global Net and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Global Net 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 Global Net and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease, and Wheeler Real Estate, you can compare the effects of market volatilities on Global Net 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 Global Net with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Wheeler Real.
Diversification Opportunities for Global Net and Wheeler Real
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Wheeler is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease, 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 Global Net 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 Global Net Lease, 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 Global Net i.e., Global Net and Wheeler Real go up and down completely randomly.
Pair Corralation between Global Net and Wheeler Real
Considering the 90-day investment horizon Global Net Lease, is expected to under-perform the Wheeler Real. But the stock apears to be less risky and, when comparing its historical volatility, Global Net Lease, is 58.24 times less risky than Wheeler Real. The stock trades about -0.02 of its potential returns per unit of risk. The Wheeler Real Estate is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,899 in Wheeler Real Estate on September 3, 2024 and sell it today you would earn a total of 11,651 from holding Wheeler Real Estate or generate 401.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 56.77% |
| Values | Daily Returns |
Global Net Lease, vs. Wheeler Real Estate
Performance |
| Timeline |
| Global Net Lease, |
| Wheeler Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Global Net and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Wheeler Real
The main advantage of trading using opposite Global Net and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net 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.| Global Net vs. Broadstone Net Lease | Global Net vs. Armada Hflr Pr | Global Net vs. Brightspire Capital | Global Net vs. Safehold |
| Wheeler Real vs. The Mosaic | Wheeler Real vs. Origin Materials | Wheeler Real vs. Sealed Air | Wheeler Real vs. enVVeno Medical Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |