Correlation Between Gaming Leisure and Outfront Media
Can any of the company-specific risk be diversified away by investing in both Gaming Leisure and Outfront Media 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 Outfront Media 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 Outfront Media, you can compare the effects of market volatilities on Gaming Leisure and Outfront Media 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 Outfront Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Leisure and Outfront Media.
Diversification Opportunities for Gaming Leisure and Outfront Media
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaming and Outfront is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Leisure Properties and Outfront Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outfront Media 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 Outfront Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outfront Media has no effect on the direction of Gaming Leisure i.e., Gaming Leisure and Outfront Media go up and down completely randomly.
Pair Corralation between Gaming Leisure and Outfront Media
Given the investment horizon of 90 days Gaming Leisure is expected to generate 2.02 times less return on investment than Outfront Media. But when comparing it to its historical volatility, Gaming Leisure Properties is 1.28 times less risky than Outfront Media. It trades about 0.05 of its potential returns per unit of risk. Outfront Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,796 in Outfront Media on November 2, 2024 and sell it today you would earn a total of 52.00 from holding Outfront Media or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Leisure Properties vs. Outfront Media
Performance |
| Timeline |
| Gaming Leisure Properties |
| Outfront Media |
Gaming Leisure and Outfront Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Leisure and Outfront Media
The main advantage of trading using opposite Gaming Leisure and Outfront Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Leisure position performs unexpectedly, Outfront Media 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 Outfront Media will offset losses from the drop in Outfront Media's long position.| Gaming Leisure vs. VICI Properties | Gaming Leisure vs. Brixmor Property | Gaming Leisure vs. Sabra Healthcare REIT | Gaming Leisure vs. CubeSmart |
| Outfront Media vs. PotlatchDeltic Corp | Outfront Media vs. Gaming Leisure Properties | Outfront Media vs. Rayonier | Outfront Media vs. Weyerhaeuser |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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