Correlation Between Urban Edge and Wheeler Real

Can any of the company-specific risk be diversified away by investing in both Urban Edge and Wheeler Real 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 Urban Edge and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Urban Edge Properties and Wheeler Real Estate, you can compare the effects of market volatilities on Urban Edge and Wheeler Real 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 Urban Edge with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Wheeler Real.

Diversification Opportunities for Urban Edge and Wheeler Real

0.71

Correlation Coefficient

Urban Edge  Wheeler Real

Poor diversification

The 3 months correlation between Urban and Wheeler is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate and Urban Edge 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 Urban Edge Properties are associated (or correlated) with Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Urban Edge i.e., Urban Edge and Wheeler Real go up and down completely randomly.

Pair Corralation between Urban Edge and Wheeler Real

Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.15 times more return on investment than Wheeler Real. However, Urban Edge Properties is 6.86 times less risky than Wheeler Real. It trades about -0.12 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.4 per unit of risk. If you would invest  2,115  in Urban Edge Properties on December 27, 2024 and sell it today you would lose (229.00) from holding Urban Edge Properties or give up 10.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Urban Edge Properties  vs.  Wheeler Real Estate

Urban Edge Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Urban Edge Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Wheeler Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wheeler Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Urban Edge and Wheeler Real

The main advantage of trading using opposite Urban Edge and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, Wheeler Real 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 Wheeler Real will offset losses from the drop in Wheeler Real's long position.

The idea behind Urban Edge Properties and Wheeler Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.