Correlation Between Riocan REIT and WFD Unibail
Can any of the company-specific risk be diversified away by investing in both Riocan REIT and WFD Unibail 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 Riocan REIT and WFD Unibail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Riocan REIT and WFD Unibail Rodamco, you can compare the effects of market volatilities on Riocan REIT and WFD Unibail 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 Riocan REIT with a short position of WFD Unibail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Riocan REIT and WFD Unibail.
Diversification Opportunities for Riocan REIT and WFD Unibail
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Riocan and WFD is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Riocan REIT and WFD Unibail Rodamco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WFD Unibail Rodamco and Riocan REIT 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 Riocan REIT are associated (or correlated) with WFD Unibail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WFD Unibail Rodamco has no effect on the direction of Riocan REIT i.e., Riocan REIT and WFD Unibail go up and down completely randomly.
Pair Corralation between Riocan REIT and WFD Unibail
Assuming the 90 days horizon Riocan REIT is expected to generate 143.25 times less return on investment than WFD Unibail. But when comparing it to its historical volatility, Riocan REIT is 1.81 times less risky than WFD Unibail. It trades about 0.0 of its potential returns per unit of risk. WFD Unibail Rodamco is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,766 in WFD Unibail Rodamco on August 31, 2024 and sell it today you would earn a total of 3,327 from holding WFD Unibail Rodamco or generate 69.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 73.26% |
| Values | Daily Returns |
Riocan REIT vs. WFD Unibail Rodamco
Performance |
| Timeline |
| Riocan REIT |
| WFD Unibail Rodamco |
Riocan REIT and WFD Unibail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Riocan REIT and WFD Unibail
The main advantage of trading using opposite Riocan REIT and WFD Unibail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Riocan REIT position performs unexpectedly, WFD Unibail 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 WFD Unibail will offset losses from the drop in WFD Unibail's long position.| Riocan REIT vs. Choice Properties Real | Riocan REIT vs. CT Real Estate | Riocan REIT vs. Firm Capital Property | Riocan REIT vs. Slate Grocery REIT |
| WFD Unibail vs. Kimco Realty | WFD Unibail vs. Simon Property Group | WFD Unibail vs. Saul Centers | WFD Unibail 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |