Correlation Between Simon Property and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Simon Property 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 Simon Property and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Wheeler Real Estate, you can compare the effects of market volatilities on Simon Property 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 Simon Property with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Wheeler Real.
Diversification Opportunities for Simon Property and Wheeler Real
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Simon and Wheeler is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group 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 Simon Property 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 Simon Property Group 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 Simon Property i.e., Simon Property and Wheeler Real go up and down completely randomly.
Pair Corralation between Simon Property and Wheeler Real
Assuming the 90 days trading horizon Simon Property Group is expected to under-perform the Wheeler Real. But the preferred stock apears to be less risky and, when comparing its historical volatility, Simon Property Group is 5.21 times less risky than Wheeler Real. The preferred stock trades about -0.38 of its potential returns per unit of risk. The Wheeler Real Estate is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,606 in Wheeler Real Estate on September 2, 2024 and sell it today you would lose (46.00) from holding Wheeler Real Estate or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Wheeler Real Estate
Performance |
| Timeline |
| Simon Property Group |
| Wheeler Real Estate |
Simon Property and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Wheeler Real
The main advantage of trading using opposite Simon Property and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property 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.| Simon Property vs. Site Centers Corp | Simon Property vs. Urban Edge Properties | Simon Property vs. Retail Opportunity Investments | Simon Property vs. Brixmor Property |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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