Correlation Between Macerich and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Macerich 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 Macerich and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macerich Company and Wheeler Real Estate, you can compare the effects of market volatilities on Macerich 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 Macerich with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macerich and Wheeler Real.
Diversification Opportunities for Macerich and Wheeler Real
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macerich and Wheeler is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macerich Company 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 Macerich 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 Macerich Company 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 Macerich i.e., Macerich and Wheeler Real go up and down completely randomly.
Pair Corralation between Macerich and Wheeler Real
Considering the 90-day investment horizon Macerich is expected to generate 15.24 times less return on investment than Wheeler Real. But when comparing it to its historical volatility, Macerich Company is 1.95 times less risky than Wheeler Real. It trades about 0.04 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Wheeler Real Estate on November 4, 2024 and sell it today you would earn a total of 600.00 from holding Wheeler Real Estate or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macerich Company vs. Wheeler Real Estate
Performance |
| Timeline |
| Macerich |
| Wheeler Real Estate |
Macerich and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macerich and Wheeler Real
The main advantage of trading using opposite Macerich and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macerich 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.| Macerich vs. Kimco Realty | Macerich vs. Regency Centers | Macerich vs. Site Centers Corp | Macerich vs. Federal Realty Investment |
| Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Saul Centers | Wheeler Real vs. Wheeler Real Estate |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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