Correlation Between Wheeler Real and Americann

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

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

Diversification Opportunities for Wheeler Real and Americann

-0.83

Correlation Coefficient

Wheeler Real  Americann

Pay attention - limited upside

The 3 months correlation between Wheeler and Americann is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Americann in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americann and Wheeler Real 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 Wheeler Real Estate are associated (or correlated) with Americann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americann has no effect on the direction of Wheeler Real i.e., Wheeler Real and Americann go up and down completely randomly.

Pair Corralation between Wheeler Real and Americann

Assuming the 90 days horizon Wheeler Real Estate is expected to generate 0.07 times more return on investment than Americann. However, Wheeler Real Estate is 14.91 times less risky than Americann. It trades about 0.12 of its potential returns per unit of risk. Americann is currently generating about -0.01 per unit of risk. If you would invest  2,987  in Wheeler Real Estate on March 6, 2025 and sell it today you would earn a total of  429.00  from holding Wheeler Real Estate or generate 14.36% return on investment over 90 days.

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

Wheeler Real Estate  vs.  Americann

Wheeler Real Estate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wheeler Real Estate are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Wheeler Real exhibited solid returns over the last few months and may actually be approaching a breakup point.

Americann

Risk-Adjusted Performance

Very Weak

Over the last 90 days Americann has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Wheeler Real and Americann

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

The idea behind Wheeler Real Estate and Americann 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 CEOs Directory module to screen CEOs from public companies around the world.