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
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Urban and Wheeler is 0.81. 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 is expected to generate 121.33 times less return on investment than Wheeler Real. But when comparing it to its historical volatility, Urban Edge Properties is 76.1 times less risky than Wheeler Real. It trades about 0.07 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,899 in Wheeler Real Estate on September 3, 2024 and sell it today you would earn a total of 11,651 from holding Wheeler Real Estate or generate 401.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 56.77% |
| Values | Daily Returns |
Urban Edge Properties vs. Wheeler Real Estate
Performance |
| Timeline |
| Urban Edge Properties |
| Wheeler Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
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. The Mosaic | Wheeler Real vs. Origin Materials | Wheeler Real vs. Sealed Air | Wheeler Real vs. enVVeno Medical 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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