Correlation Between Brightspire Capital and VICI Properties
Can any of the company-specific risk be diversified away by investing in both Brightspire Capital and VICI Properties 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 Brightspire Capital and VICI Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brightspire Capital and VICI Properties, you can compare the effects of market volatilities on Brightspire Capital and VICI Properties 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 Brightspire Capital with a short position of VICI Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brightspire Capital and VICI Properties.
Diversification Opportunities for Brightspire Capital and VICI Properties
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brightspire and VICI is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Brightspire Capital and VICI Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VICI Properties and Brightspire Capital 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 Brightspire Capital are associated (or correlated) with VICI Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VICI Properties has no effect on the direction of Brightspire Capital i.e., Brightspire Capital and VICI Properties go up and down completely randomly.
Pair Corralation between Brightspire Capital and VICI Properties
Given the investment horizon of 90 days Brightspire Capital is expected to generate 1.87 times more return on investment than VICI Properties. However, Brightspire Capital is 1.87 times more volatile than VICI Properties. It trades about 0.01 of its potential returns per unit of risk. VICI Properties is currently generating about 0.0 per unit of risk. If you would invest 584.00 in Brightspire Capital on November 5, 2024 and sell it today you would lose (21.00) from holding Brightspire Capital or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brightspire Capital vs. VICI Properties
Performance |
| Timeline |
| Brightspire Capital |
| VICI Properties |
Brightspire Capital and VICI Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brightspire Capital and VICI Properties
The main advantage of trading using opposite Brightspire Capital and VICI Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brightspire Capital position performs unexpectedly, VICI Properties 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 VICI Properties will offset losses from the drop in VICI Properties' long position.| Brightspire Capital vs. Essential Properties Realty | Brightspire Capital vs. Armada Hflr Pr | Brightspire Capital vs. CTO Realty Growth | Brightspire Capital vs. Modiv Inc |
| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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