Correlation Between Wheeler Real and Macerich
Can any of the company-specific risk be diversified away by investing in both Wheeler Real and Macerich 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 Macerich 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 Macerich Company, you can compare the effects of market volatilities on Wheeler Real and Macerich 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 Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Macerich.
Diversification Opportunities for Wheeler Real and Macerich
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wheeler and Macerich is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Macerich Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich 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 Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of Wheeler Real i.e., Wheeler Real and Macerich go up and down completely randomly.
Pair Corralation between Wheeler Real and Macerich
Assuming the 90 days horizon Wheeler Real is expected to generate 1.19 times less return on investment than Macerich. In addition to that, Wheeler Real is 2.18 times more volatile than Macerich Company. It trades about 0.04 of its total potential returns per unit of risk. Macerich Company is currently generating about 0.11 per unit of volatility. If you would invest 1,794 in Macerich Company on October 25, 2024 and sell it today you would earn a total of 218.00 from holding Macerich Company or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Wheeler Real Estate vs. Macerich Company
Performance |
| Timeline |
| Wheeler Real Estate |
| Macerich |
Wheeler Real and Macerich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and Macerich
The main advantage of trading using opposite Wheeler Real and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich's long position.| Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Saul Centers | Wheeler Real vs. Site Centers Corp |
| Macerich vs. Kimco Realty | Macerich vs. Regency Centers | Macerich vs. Site Centers Corp | Macerich 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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