Correlation Between Seritage Growth and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Seritage Growth 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 Seritage Growth and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seritage Growth Properties and Wheeler Real Estate, you can compare the effects of market volatilities on Seritage Growth 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 Seritage Growth with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seritage Growth and Wheeler Real.
Diversification Opportunities for Seritage Growth and Wheeler Real
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seritage and Wheeler is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Seritage Growth 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 Seritage Growth 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 Seritage Growth 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 Seritage Growth i.e., Seritage Growth and Wheeler Real go up and down completely randomly.
Pair Corralation between Seritage Growth and Wheeler Real
Assuming the 90 days trading horizon Seritage Growth Properties is expected to under-perform the Wheeler Real. But the preferred stock apears to be less risky and, when comparing its historical volatility, Seritage Growth Properties is 2.83 times less risky than Wheeler Real. The preferred stock trades about -0.03 of its potential returns per unit of risk. The Wheeler Real Estate is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 290.00 in Wheeler Real Estate on November 5, 2024 and sell it today you would earn a total of 150.00 from holding Wheeler Real Estate or generate 51.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seritage Growth Properties vs. Wheeler Real Estate
Performance |
| Timeline |
| Seritage Growth Prop |
| Wheeler Real Estate |
Seritage Growth and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seritage Growth and Wheeler Real
The main advantage of trading using opposite Seritage Growth and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seritage Growth 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.| Seritage Growth vs. Slate Grocery REIT | Seritage Growth vs. Rithm Property Trust | Seritage Growth vs. Riocan REIT | Seritage Growth vs. Smart REIT |
| Wheeler Real vs. Wheeler Real Estate | Wheeler Real vs. Site Centers Corp | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Brixmor Property |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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