Correlation Between WFD Unibail and Primaris Real
Can any of the company-specific risk be diversified away by investing in both WFD Unibail and Primaris 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 WFD Unibail and Primaris Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WFD Unibail Rodamco and Primaris Real Estate, you can compare the effects of market volatilities on WFD Unibail and Primaris 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 WFD Unibail with a short position of Primaris Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of WFD Unibail and Primaris Real.
Diversification Opportunities for WFD Unibail and Primaris Real
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WFD and Primaris is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding WFD Unibail Rodamco and Primaris Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Real Estate and WFD Unibail 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 WFD Unibail Rodamco are associated (or correlated) with Primaris Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Real Estate has no effect on the direction of WFD Unibail i.e., WFD Unibail and Primaris Real go up and down completely randomly.
Pair Corralation between WFD Unibail and Primaris Real
Assuming the 90 days horizon WFD Unibail Rodamco is expected to generate 1.36 times more return on investment than Primaris Real. However, WFD Unibail is 1.36 times more volatile than Primaris Real Estate. It trades about 0.42 of its potential returns per unit of risk. Primaris Real Estate is currently generating about -0.22 per unit of risk. If you would invest 7,402 in WFD Unibail Rodamco on November 2, 2024 and sell it today you would earn a total of 908.00 from holding WFD Unibail Rodamco or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WFD Unibail Rodamco vs. Primaris Real Estate
Performance |
| Timeline |
| WFD Unibail Rodamco |
| Primaris Real Estate |
WFD Unibail and Primaris Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WFD Unibail and Primaris Real
The main advantage of trading using opposite WFD Unibail and Primaris Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WFD Unibail position performs unexpectedly, Primaris 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 Primaris Real will offset losses from the drop in Primaris Real's long position.| WFD Unibail vs. Cedar Realty Trust | WFD Unibail vs. Wheeler Real Estate | WFD Unibail vs. Macerich Company | WFD Unibail vs. Simon Property Group |
| Primaris Real vs. Slate Grocery REIT | Primaris Real vs. Seritage Growth Properties | Primaris Real vs. Rithm Property Trust | Primaris Real vs. Smart REIT |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |