Correlation Between Wheeler Real and Federal Realty
Can any of the company-specific risk be diversified away by investing in both Wheeler Real and Federal Realty 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 Wheeler Real and Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheeler Real Estate and Federal Realty Investment, you can compare the effects of market volatilities on Wheeler Real and Federal Realty 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 Wheeler Real with a short position of Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Federal Realty.
Diversification Opportunities for Wheeler Real and Federal Realty
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wheeler and Federal is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment and Wheeler Real 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 Wheeler Real Estate are associated (or correlated) with Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of Wheeler Real i.e., Wheeler Real and Federal Realty go up and down completely randomly.
Pair Corralation between Wheeler Real and Federal Realty
Given the investment horizon of 90 days Wheeler Real Estate is expected to under-perform the Federal Realty. In addition to that, Wheeler Real is 30.91 times more volatile than Federal Realty Investment. It trades about -0.03 of its total potential returns per unit of risk. Federal Realty Investment is currently generating about -0.17 per unit of volatility. If you would invest 2,294 in Federal Realty Investment on August 28, 2024 and sell it today you would lose (98.00) from holding Federal Realty Investment or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheeler Real Estate vs. Federal Realty Investment
Performance |
| Timeline |
| Wheeler Real Estate |
| Federal Realty Investment |
Wheeler Real and Federal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and Federal Realty
The main advantage of trading using opposite Wheeler Real and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real position performs unexpectedly, Federal Realty 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 Federal Realty will offset losses from the drop in Federal Realty's long position.| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Macerich Company | Wheeler Real vs. Simon Property Group |
| Federal Realty vs. Saul Centers | Federal Realty vs. Wheeler Real Estate | Federal Realty vs. Macerich Company | Federal Realty 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |