Correlation Between Urban Edge and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Wheeler Real Estate, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Wheeler Real.
Diversification Opportunities for Urban Edge and Wheeler Real
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Urban and Wheeler is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge 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 Urban Edge 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 Urban Edge 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 Urban Edge i.e., Urban Edge and Wheeler Real go up and down completely randomly.
Pair Corralation between Urban Edge and Wheeler Real
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.27 times more return on investment than Wheeler Real. However, Urban Edge Properties is 3.77 times less risky than Wheeler Real. It trades about 0.18 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.89 per unit of risk. If you would invest 2,216 in Urban Edge Properties on August 28, 2024 and sell it today you would earn a total of 97.00 from holding Urban Edge Properties or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Wheeler Real Estate
Performance |
| Timeline |
| Urban Edge Properties |
| Wheeler Real Estate |
Urban Edge and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Wheeler Real
The main advantage of trading using opposite Urban Edge and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Macerich Company | Wheeler Real vs. Simon Property Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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