Correlation Between Whitestone REIT and National Retail
Can any of the company-specific risk be diversified away by investing in both Whitestone REIT and National Retail 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 National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitestone REIT and National Retail Properties, you can compare the effects of market volatilities on Whitestone REIT and National Retail 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 National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitestone REIT and National Retail.
Diversification Opportunities for Whitestone REIT and National Retail
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Whitestone and National is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Whitestone REIT and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop 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 National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of Whitestone REIT i.e., Whitestone REIT and National Retail go up and down completely randomly.
Pair Corralation between Whitestone REIT and National Retail
Considering the 90-day investment horizon Whitestone REIT is expected to generate 1.35 times more return on investment than National Retail. However, Whitestone REIT is 1.35 times more volatile than National Retail Properties. It trades about 0.07 of its potential returns per unit of risk. National Retail Properties is currently generating about 0.01 per unit of risk. If you would invest 901.00 in Whitestone REIT on August 23, 2024 and sell it today you would earn a total of 565.00 from holding Whitestone REIT or generate 62.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whitestone REIT vs. National Retail Properties
Performance |
| Timeline |
| Whitestone REIT |
| National Retail Prop |
Whitestone REIT and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitestone REIT and National Retail
The main advantage of trading using opposite Whitestone REIT and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitestone REIT position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail'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 |
| National Retail vs. Acadia Realty Trust | National Retail vs. Federal Realty Investment | National Retail vs. Realty Income | National Retail vs. Whitestone REIT |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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