Correlation Between Broadstone Net and Gaming Leisure
Can any of the company-specific risk be diversified away by investing in both Broadstone Net and Gaming Leisure 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 Broadstone Net and Gaming Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadstone Net Lease and Gaming Leisure Properties, you can compare the effects of market volatilities on Broadstone Net and Gaming Leisure 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 Broadstone Net with a short position of Gaming Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadstone Net and Gaming Leisure.
Diversification Opportunities for Broadstone Net and Gaming Leisure
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Broadstone and Gaming is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Broadstone Net Lease and Gaming Leisure Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Leisure Properties and Broadstone Net 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 Broadstone Net Lease are associated (or correlated) with Gaming Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Leisure Properties has no effect on the direction of Broadstone Net i.e., Broadstone Net and Gaming Leisure go up and down completely randomly.
Pair Corralation between Broadstone Net and Gaming Leisure
Considering the 90-day investment horizon Broadstone Net Lease is expected to under-perform the Gaming Leisure. But the stock apears to be less risky and, when comparing its historical volatility, Broadstone Net Lease is 1.07 times less risky than Gaming Leisure. The stock trades about -0.2 of its potential returns per unit of risk. The Gaming Leisure Properties is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,049 in Gaming Leisure Properties on August 27, 2024 and sell it today you would earn a total of 43.00 from holding Gaming Leisure Properties or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadstone Net Lease vs. Gaming Leisure Properties
Performance |
| Timeline |
| Broadstone Net Lease |
| Gaming Leisure Properties |
Broadstone Net and Gaming Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadstone Net and Gaming Leisure
The main advantage of trading using opposite Broadstone Net and Gaming Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadstone Net position performs unexpectedly, Gaming Leisure 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 Gaming Leisure will offset losses from the drop in Gaming Leisure's long position.| Broadstone Net vs. Armada Hflr Pr | Broadstone Net vs. Brightspire Capital | Broadstone Net vs. Safehold | Broadstone Net vs. Essential Properties Realty |
| Gaming Leisure vs. VICI Properties | Gaming Leisure vs. Brixmor Property | Gaming Leisure vs. Sabra Healthcare REIT | Gaming Leisure vs. CubeSmart |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |