Correlation Between Gaming Leisure and Gladstone Land
Can any of the company-specific risk be diversified away by investing in both Gaming Leisure and Gladstone Land 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 Gaming Leisure and Gladstone Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Leisure Properties and Gladstone Land, you can compare the effects of market volatilities on Gaming Leisure and Gladstone Land 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 Gaming Leisure with a short position of Gladstone Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Leisure and Gladstone Land.
Diversification Opportunities for Gaming Leisure and Gladstone Land
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaming and Gladstone is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Leisure Properties and Gladstone Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Land and Gaming Leisure 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 Gaming Leisure Properties are associated (or correlated) with Gladstone Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Land has no effect on the direction of Gaming Leisure i.e., Gaming Leisure and Gladstone Land go up and down completely randomly.
Pair Corralation between Gaming Leisure and Gladstone Land
Given the investment horizon of 90 days Gaming Leisure is expected to generate 1.03 times less return on investment than Gladstone Land. But when comparing it to its historical volatility, Gaming Leisure Properties is 1.25 times less risky than Gladstone Land. It trades about 0.05 of its potential returns per unit of risk. Gladstone Land is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,071 in Gladstone Land on November 2, 2024 and sell it today you would earn a total of 14.00 from holding Gladstone Land or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Leisure Properties vs. Gladstone Land
Performance |
| Timeline |
| Gaming Leisure Properties |
| Gladstone Land |
Gaming Leisure and Gladstone Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Leisure and Gladstone Land
The main advantage of trading using opposite Gaming Leisure and Gladstone Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Leisure position performs unexpectedly, Gladstone Land 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 Gladstone Land will offset losses from the drop in Gladstone Land's long position.| Gaming Leisure vs. VICI Properties | Gaming Leisure vs. Brixmor Property | Gaming Leisure vs. Sabra Healthcare REIT | Gaming Leisure vs. CubeSmart |
| Gladstone Land vs. Farmland Partners | Gladstone Land vs. STAG Industrial | Gladstone Land vs. Gladstone Commercial | Gladstone Land vs. LTC Properties |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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