Correlation Between Wheeler Real and Simon Property
Can any of the company-specific risk be diversified away by investing in both Wheeler Real and Simon Property 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 Simon Property 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 Simon Property Group, you can compare the effects of market volatilities on Wheeler Real and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Simon Property.
Diversification Opportunities for Wheeler Real and Simon Property
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wheeler and Simon is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Wheeler Real i.e., Wheeler Real and Simon Property go up and down completely randomly.
Pair Corralation between Wheeler Real and Simon Property
Assuming the 90 days horizon Wheeler Real Estate is expected to generate 2.13 times more return on investment than Simon Property. However, Wheeler Real is 2.13 times more volatile than Simon Property Group. It trades about 0.08 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.03 per unit of risk. If you would invest 1,081 in Wheeler Real Estate on September 2, 2024 and sell it today you would earn a total of 1,479 from holding Wheeler Real Estate or generate 136.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheeler Real Estate vs. Simon Property Group
Performance |
| Timeline |
| Wheeler Real Estate |
| Simon Property Group |
Wheeler Real and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and Simon Property
The main advantage of trading using opposite Wheeler Real and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property'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 |
| Simon Property vs. Site Centers Corp | Simon Property vs. Urban Edge Properties | Simon Property vs. Retail Opportunity Investments | Simon Property vs. Brixmor Property |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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