Correlation Between Wheeler Real and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Wheeler Real and Tanger Factory 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 Tanger Factory 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 Tanger Factory Outlet, you can compare the effects of market volatilities on Wheeler Real and Tanger Factory 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 Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Tanger Factory.
Diversification Opportunities for Wheeler Real and Tanger Factory
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wheeler and Tanger is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet 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 Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Wheeler Real i.e., Wheeler Real and Tanger Factory go up and down completely randomly.
Pair Corralation between Wheeler Real and Tanger Factory
Assuming the 90 days horizon Wheeler Real Estate is expected to generate 3.48 times more return on investment than Tanger Factory. However, Wheeler Real is 3.48 times more volatile than Tanger Factory Outlet. It trades about 0.58 of its potential returns per unit of risk. Tanger Factory Outlet is currently generating about -0.05 per unit of risk. If you would invest 290.00 in Wheeler Real Estate on November 5, 2024 and sell it today you would earn a total of 150.00 from holding Wheeler Real Estate or generate 51.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Wheeler Real Estate vs. Tanger Factory Outlet
Performance |
| Timeline |
| Wheeler Real Estate |
| Tanger Factory Outlet |
Wheeler Real and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheeler Real and Tanger Factory
The main advantage of trading using opposite Wheeler Real and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheeler Real position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's 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 |
| Tanger Factory vs. Regency Centers | Tanger Factory vs. Getty Realty | Tanger Factory vs. Site Centers Corp | Tanger Factory 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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