Correlation Between Whitestone REIT and Netstreit Corp
Can any of the company-specific risk be diversified away by investing in both Whitestone REIT and Netstreit Corp 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 Netstreit Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitestone REIT and Netstreit Corp, you can compare the effects of market volatilities on Whitestone REIT and Netstreit Corp 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 Netstreit Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitestone REIT and Netstreit Corp.
Diversification Opportunities for Whitestone REIT and Netstreit Corp
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Whitestone and Netstreit is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Whitestone REIT and Netstreit Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netstreit Corp 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 Netstreit Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netstreit Corp has no effect on the direction of Whitestone REIT i.e., Whitestone REIT and Netstreit Corp go up and down completely randomly.
Pair Corralation between Whitestone REIT and Netstreit Corp
Considering the 90-day investment horizon Whitestone REIT is expected to generate 0.75 times more return on investment than Netstreit Corp. However, Whitestone REIT is 1.34 times less risky than Netstreit Corp. It trades about 0.21 of its potential returns per unit of risk. Netstreit Corp is currently generating about 0.13 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whitestone REIT vs. Netstreit Corp
Performance |
| Timeline |
| Whitestone REIT |
| Netstreit Corp |
Whitestone REIT and Netstreit Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitestone REIT and Netstreit Corp
The main advantage of trading using opposite Whitestone REIT and Netstreit Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitestone REIT position performs unexpectedly, Netstreit Corp 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 Netstreit Corp will offset losses from the drop in Netstreit Corp'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 |
| Netstreit Corp vs. CBL Associates Properties | Netstreit Corp vs. Cedar Realty Trust | Netstreit Corp vs. Simon Property Group | Netstreit Corp 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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