Correlation Between Global Net and Argosy Property
Can any of the company-specific risk be diversified away by investing in both Global Net and Argosy Property 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 Argosy Property 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 Argosy Property Limited, you can compare the effects of market volatilities on Global Net and Argosy Property 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 Argosy Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Argosy Property.
Diversification Opportunities for Global Net and Argosy Property
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Argosy is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease, and Argosy Property Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Property 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 Argosy Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Property has no effect on the direction of Global Net i.e., Global Net and Argosy Property go up and down completely randomly.
Pair Corralation between Global Net and Argosy Property
Considering the 90-day investment horizon Global Net Lease, is expected to under-perform the Argosy Property. In addition to that, Global Net is 6.21 times more volatile than Argosy Property Limited. It trades about -0.01 of its total potential returns per unit of risk. Argosy Property Limited is currently generating about 0.13 per unit of volatility. If you would invest 56.00 in Argosy Property Limited on December 4, 2024 and sell it today you would earn a total of 13.00 from holding Argosy Property Limited or generate 23.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
Global Net Lease, vs. Argosy Property Limited
Performance |
| Timeline |
| Global Net Lease, |
| Argosy Property |
Global Net and Argosy Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Argosy Property
The main advantage of trading using opposite Global Net and Argosy Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, Argosy Property 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 Argosy Property will offset losses from the drop in Argosy Property'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 |
| Argosy Property vs. Udemy Inc | Argosy Property vs. Capital Clean Energy | Argosy Property vs. Elite Education Group | Argosy Property vs. Nexstar Broadcasting Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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