Correlation Between Wheeler Real and Macerich

Can any of the company-specific risk be diversified away by investing in both Wheeler Real and Macerich 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 Macerich 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 Macerich Company, you can compare the effects of market volatilities on Wheeler Real and Macerich 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 Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheeler Real and Macerich.

Diversification Opportunities for Wheeler Real and Macerich

-0.58

Correlation Coefficient

Wheeler Real  Macerich

Excellent diversification

The 3 months correlation between Wheeler and Macerich is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Wheeler Real Estate and Macerich Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich 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 Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of Wheeler Real i.e., Wheeler Real and Macerich go up and down completely randomly.

Pair Corralation between Wheeler Real and Macerich

Given the investment horizon of 90 days Wheeler Real Estate is expected to under-perform the Macerich. In addition to that, Wheeler Real is 2.37 times more volatile than Macerich Company. It trades about -0.58 of its total potential returns per unit of risk. Macerich Company is currently generating about 0.01 per unit of volatility. If you would invest  1,611  in Macerich Company on May 6, 2025 and sell it today you would earn a total of  3.00  from holding Macerich Company or generate 0.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Wheeler Real Estate  vs.  Macerich Company

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 latest weak performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Macerich

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Macerich Company are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Macerich may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Wheeler Real and Macerich

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

The idea behind Wheeler Real Estate and Macerich Company 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.