Correlation Between Whitestone REIT and Federal Realty
Can any of the company-specific risk be diversified away by investing in both Whitestone REIT and Federal Realty 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 Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitestone REIT and Federal Realty Investment, you can compare the effects of market volatilities on Whitestone REIT and Federal Realty 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 Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitestone REIT and Federal Realty.
Diversification Opportunities for Whitestone REIT and Federal Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whitestone and Federal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whitestone REIT and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment 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 Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of Whitestone REIT i.e., Whitestone REIT and Federal Realty go up and down completely randomly.
Pair Corralation between Whitestone REIT and Federal Realty
Considering the 90-day investment horizon Whitestone REIT is expected to generate 1.12 times more return on investment than Federal Realty. However, Whitestone REIT is 1.12 times more volatile than Federal Realty Investment. It trades about 0.21 of its potential returns per unit of risk. Federal Realty Investment is currently generating about 0.18 per unit of risk. If you would invest 1,412 in Whitestone REIT on August 30, 2024 and sell it today you would earn a total of 76.00 from holding Whitestone REIT or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whitestone REIT vs. Federal Realty Investment
Performance |
| Timeline |
| Whitestone REIT |
| Federal Realty Investment |
Whitestone REIT and Federal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitestone REIT and Federal Realty
The main advantage of trading using opposite Whitestone REIT and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitestone REIT position performs unexpectedly, Federal Realty 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 Federal Realty will offset losses from the drop in Federal Realty's long position.| Whitestone REIT vs. Regency Centers | Whitestone REIT vs. Saul Centers | Whitestone REIT vs. Retail Opportunity Investments | Whitestone REIT vs. Site Centers Corp |
| Federal Realty vs. CBL Associates Properties | Federal Realty vs. Cedar Realty Trust | Federal Realty vs. Simon Property Group | Federal Realty vs. Realty Income |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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