Correlation Between Urstadt Biddle and Whitestone REIT
Can any of the company-specific risk be diversified away by investing in both Urstadt Biddle and Whitestone REIT 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 Urstadt Biddle and Whitestone REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urstadt Biddle and Whitestone REIT, you can compare the effects of market volatilities on Urstadt Biddle and Whitestone REIT 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 Urstadt Biddle with a short position of Whitestone REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urstadt Biddle and Whitestone REIT.
Diversification Opportunities for Urstadt Biddle and Whitestone REIT
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Urstadt and Whitestone is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Urstadt Biddle and Whitestone REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitestone REIT and Urstadt Biddle 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 Urstadt Biddle are associated (or correlated) with Whitestone REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitestone REIT has no effect on the direction of Urstadt Biddle i.e., Urstadt Biddle and Whitestone REIT go up and down completely randomly.
Pair Corralation between Urstadt Biddle and Whitestone REIT
Considering the 90-day investment horizon Urstadt Biddle is expected to generate 1.8 times more return on investment than Whitestone REIT. However, Urstadt Biddle is 1.8 times more volatile than Whitestone REIT. It trades about 0.07 of its potential returns per unit of risk. Whitestone REIT is currently generating about 0.07 per unit of risk. If you would invest 1,769 in Urstadt Biddle on August 27, 2024 and sell it today you would earn a total of 481.00 from holding Urstadt Biddle or generate 27.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.85% |
| Values | Daily Returns |
Urstadt Biddle vs. Whitestone REIT
Performance |
| Timeline |
| Urstadt Biddle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Whitestone REIT |
Urstadt Biddle and Whitestone REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urstadt Biddle and Whitestone REIT
The main advantage of trading using opposite Urstadt Biddle and Whitestone REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urstadt Biddle position performs unexpectedly, Whitestone REIT 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 Whitestone REIT will offset losses from the drop in Whitestone REIT's long position.| Urstadt Biddle vs. Regency Centers | Urstadt Biddle vs. Saul Centers | Urstadt Biddle vs. Retail Opportunity Investments | Urstadt Biddle vs. Acadia Realty Trust |
| Whitestone REIT vs. Regency Centers | Whitestone REIT vs. Saul Centers | Whitestone REIT vs. Retail Opportunity Investments | Whitestone REIT vs. Site Centers Corp |
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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