Correlation Between Global Net and British Land
Can any of the company-specific risk be diversified away by investing in both Global Net and British 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 Global Net and British Land 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 British Land, you can compare the effects of market volatilities on Global Net and British 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 Global Net with a short position of British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and British Land.
Diversification Opportunities for Global Net and British Land
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and British is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease, and British Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land 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 British Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British Land has no effect on the direction of Global Net i.e., Global Net and British Land go up and down completely randomly.
Pair Corralation between Global Net and British Land
If you would invest 569.00 in British Land on August 28, 2024 and sell it today you would earn a total of 0.00 from holding British Land or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Net Lease, vs. British Land
Performance |
| Timeline |
| Global Net Lease, |
| British Land |
Global Net and British Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and British Land
The main advantage of trading using opposite Global Net and British Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, British 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 British Land will offset losses from the drop in British Land's long position.| Global Net vs. Peakstone Realty Trust | Global Net vs. Gladstone Commercial | Global Net vs. CTO Realty Growth | Global Net vs. Brightspire Capital |
| British Land vs. Highlands REIT | British Land vs. Fibra UNO | British Land vs. W P Carey | British Land vs. Essential Properties Realty |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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