Correlation Between Wheeler Real and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Wheeler Real and Cedar 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 Cedar 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 Cedar Realty Trust, you can compare the effects of market volatilities on Wheeler Real and Cedar 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Cedar Realty.
Diversification Opportunities for Wheeler Real and Cedar Realty
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wheeler and Cedar is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Wheeler Real i.e., Wheeler Real and Cedar Realty go up and down completely randomly.
Pair Corralation between Wheeler Real and Cedar Realty
Assuming the 90 days horizon Wheeler Real Estate is expected to generate 3.6 times more return on investment than Cedar Realty. However, Wheeler Real is 3.6 times more volatile than Cedar Realty Trust. It trades about 0.19 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.12 per unit of risk. If you would invest 2,890 in Wheeler Real Estate on November 9, 2024 and sell it today you would earn a total of 322.00 from holding Wheeler Real Estate or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheeler Real Estate vs. Cedar Realty Trust
Performance |
| Timeline |
| Wheeler Real Estate |
| Cedar Realty Trust |
Wheeler Real and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and Cedar Realty
The main advantage of trading using opposite Wheeler Real and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real position performs unexpectedly, Cedar 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Saul Centers | Wheeler Real vs. Wheeler Real Estate |
| Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. CBL Associates Properties | Cedar Realty vs. Saul Centers | Cedar Realty vs. Federal Realty Investment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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