Correlation Between Douglas Emmett and Gaming Leisure
Can any of the company-specific risk be diversified away by investing in both Douglas Emmett 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 Douglas Emmett and Gaming Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Douglas Emmett and Gaming Leisure Properties, you can compare the effects of market volatilities on Douglas Emmett 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 Douglas Emmett with a short position of Gaming Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Douglas Emmett and Gaming Leisure.
Diversification Opportunities for Douglas Emmett and Gaming Leisure
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Douglas and Gaming is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Douglas Emmett 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 Douglas Emmett 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 Douglas Emmett 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 Douglas Emmett i.e., Douglas Emmett and Gaming Leisure go up and down completely randomly.
Pair Corralation between Douglas Emmett and Gaming Leisure
Considering the 90-day investment horizon Douglas Emmett is expected to under-perform the Gaming Leisure. In addition to that, Douglas Emmett is 1.41 times more volatile than Gaming Leisure Properties. It trades about -0.1 of its total potential returns per unit of risk. Gaming Leisure Properties is currently generating about -0.04 per unit of volatility. If you would invest 4,915 in Gaming Leisure Properties on November 21, 2024 and sell it today you would lose (54.00) from holding Gaming Leisure Properties or give up 1.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Douglas Emmett vs. Gaming Leisure Properties
Performance |
Timeline |
Douglas Emmett |
Gaming Leisure Properties |
Douglas Emmett and Gaming Leisure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Douglas Emmett and Gaming Leisure
The main advantage of trading using opposite Douglas Emmett and Gaming Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Douglas Emmett 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.Douglas Emmett vs. Brandywine Realty Trust | ||
Douglas Emmett vs. Kilroy Realty Corp | ||
Douglas Emmett vs. Piedmont Office Realty | ||
Douglas Emmett vs. City Office |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |