Correlation Between Whitestone REIT and Saul Centers
Can any of the company-specific risk be diversified away by investing in both Whitestone REIT and Saul 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 Whitestone REIT and Saul Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitestone REIT and Saul Centers, you can compare the effects of market volatilities on Whitestone REIT and Saul 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 Whitestone REIT with a short position of Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitestone REIT and Saul Centers.
Diversification Opportunities for Whitestone REIT and Saul Centers
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Whitestone and Saul is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Whitestone REIT and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers and Whitestone REIT 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 Whitestone REIT are associated (or correlated) with Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Whitestone REIT i.e., Whitestone REIT and Saul Centers go up and down completely randomly.
Pair Corralation between Whitestone REIT and Saul Centers
Considering the 90-day investment horizon Whitestone REIT is expected to generate 1.02 times more return on investment than Saul Centers. However, Whitestone REIT is 1.02 times more volatile than Saul Centers. It trades about 0.07 of its potential returns per unit of risk. Saul Centers is currently generating about 0.02 per unit of risk. If you would invest 895.00 in Whitestone REIT on August 27, 2024 and sell it today you would earn a total of 578.00 from holding Whitestone REIT or generate 64.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whitestone REIT vs. Saul Centers
Performance |
| Timeline |
| Whitestone REIT |
| Saul Centers |
Whitestone REIT and Saul Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitestone REIT and Saul Centers
The main advantage of trading using opposite Whitestone REIT and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitestone REIT position performs unexpectedly, Saul 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 Saul Centers will offset losses from the drop in Saul Centers' long position.| Whitestone REIT vs. Regency Centers | Whitestone REIT vs. Saul Centers | Whitestone REIT vs. Retail Opportunity Investments | Whitestone REIT vs. Site Centers Corp |
| Saul Centers vs. Urban Edge Properties | Saul Centers vs. Site Centers Corp | Saul Centers vs. Kite Realty Group | Saul Centers vs. Acadia Realty Trust |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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