Correlation Between Whitestone REIT and Hersha Hospitality
Can any of the company-specific risk be diversified away by investing in both Whitestone REIT and Hersha Hospitality 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 Hersha Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitestone REIT and Hersha Hospitality Trust, you can compare the effects of market volatilities on Whitestone REIT and Hersha Hospitality 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 Hersha Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitestone REIT and Hersha Hospitality.
Diversification Opportunities for Whitestone REIT and Hersha Hospitality
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Whitestone and Hersha is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Whitestone REIT and Hersha Hospitality Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hersha Hospitality Trust 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 Hersha Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hersha Hospitality Trust has no effect on the direction of Whitestone REIT i.e., Whitestone REIT and Hersha Hospitality go up and down completely randomly.
Pair Corralation between Whitestone REIT and Hersha Hospitality
If you would invest 1,424 in Whitestone REIT on August 28, 2024 and sell it today you would earn a total of 60.00 from holding Whitestone REIT or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Whitestone REIT vs. Hersha Hospitality Trust
Performance |
| Timeline |
| Whitestone REIT |
| Hersha Hospitality Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Whitestone REIT and Hersha Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitestone REIT and Hersha Hospitality
The main advantage of trading using opposite Whitestone REIT and Hersha Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitestone REIT position performs unexpectedly, Hersha Hospitality 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 Hersha Hospitality will offset losses from the drop in Hersha Hospitality'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 |
| Hersha Hospitality vs. RLJ Lodging Trust | Hersha Hospitality vs. Sunstone Hotel Investors | Hersha Hospitality vs. Pebblebrook Hotel Trust | Hersha Hospitality vs. Summit Hotel 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |