Correlation Between Global Net and Gadsden Properties
Can any of the company-specific risk be diversified away by investing in both Global Net and Gadsden 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 Global Net and Gadsden Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease and Gadsden Properties, you can compare the effects of market volatilities on Global Net and Gadsden 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 Global Net with a short position of Gadsden Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Gadsden Properties.
Diversification Opportunities for Global Net and Gadsden Properties
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Gadsden is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease and Gadsden Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gadsden Properties and Global 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 Global Net Lease are associated (or correlated) with Gadsden Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gadsden Properties has no effect on the direction of Global Net i.e., Global Net and Gadsden Properties go up and down completely randomly.
Pair Corralation between Global Net and Gadsden Properties
If you would invest 1,702 in Global Net Lease on August 28, 2024 and sell it today you would earn a total of 505.00 from holding Global Net Lease or generate 29.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.28% |
| Values | Daily Returns |
Global Net Lease vs. Gadsden Properties
Performance |
| Timeline |
| Global Net Lease |
| Gadsden Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Net and Gadsden Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Gadsden Properties
The main advantage of trading using opposite Global Net and Gadsden Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, Gadsden 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 Gadsden Properties will offset losses from the drop in Gadsden Properties' long position.| Global Net vs. Global Net Lease | Global Net vs. Global Medical REIT | Global Net vs. City Office REIT | Global Net vs. ARMOUR Residential REIT |
| Gadsden Properties vs. Armada Hoffler Properties | Gadsden Properties vs. Artis REIT | Gadsden Properties vs. Ascott Residence Trust | Gadsden Properties vs. Armada Hflr Pr |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |