Correlation Between Wheeler Real and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Wheeler Real and SITE Centers 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 SITE Centers 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 SITE Centers Corp, you can compare the effects of market volatilities on Wheeler Real and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and SITE Centers.
Diversification Opportunities for Wheeler Real and SITE Centers
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wheeler and SITE is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers Corp 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Wheeler Real i.e., Wheeler Real and SITE Centers go up and down completely randomly.
Pair Corralation between Wheeler Real and SITE Centers
Assuming the 90 days horizon Wheeler Real Estate is expected to generate 8.28 times more return on investment than SITE Centers. However, Wheeler Real is 8.28 times more volatile than SITE Centers Corp. It trades about 0.11 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.17 per unit of risk. If you would invest 168.00 in Wheeler Real Estate on September 1, 2024 and sell it today you would earn a total of 143.00 from holding Wheeler Real Estate or generate 85.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.64% |
| Values | Daily Returns |
Wheeler Real Estate vs. SITE Centers Corp
Performance |
| Timeline |
| Wheeler Real Estate |
| SITE Centers Corp |
Wheeler Real and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and SITE Centers
The main advantage of trading using opposite Wheeler Real and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' long position.| Wheeler Real vs. Wheeler Real Estate | Wheeler Real vs. Site Centers Corp | Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Brixmor Property |
| SITE Centers vs. Saul Centers | SITE Centers vs. Saul Centers | SITE Centers vs. Regency Centers | SITE Centers vs. Urban Edge Properties |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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