Correlation Between National Retail and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and Wheeler Real Estate, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and Wheeler Real.
Diversification Opportunities for National Retail and Wheeler Real
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Wheeler is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties 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 National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and Wheeler Real go up and down completely randomly.
Pair Corralation between National Retail and Wheeler Real
Considering the 90-day investment horizon National Retail Properties is expected to generate 0.06 times more return on investment than Wheeler Real. However, National Retail Properties is 17.14 times less risky than Wheeler Real. It trades about 0.01 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.01 per unit of risk. If you would invest 4,185 in National Retail Properties on September 2, 2024 and sell it today you would earn a total of 213.00 from holding National Retail Properties or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. Wheeler Real Estate
Performance |
| Timeline |
| National Retail Prop |
| Wheeler Real Estate |
National Retail and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and Wheeler Real
The main advantage of trading using opposite National Retail and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Acadia Realty Trust | National Retail vs. Federal Realty Investment | National Retail vs. Realty Income | National Retail vs. Whitestone REIT |
| Wheeler Real vs. Federal Realty Investment | Wheeler Real vs. National Retail Properties | Wheeler Real vs. Kimco Realty |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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