Correlation Between Global Net and Medalist Diversified
Can any of the company-specific risk be diversified away by investing in both Global Net and Medalist Diversified 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 Medalist Diversified 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 Medalist Diversified Reit, you can compare the effects of market volatilities on Global Net and Medalist Diversified 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 Medalist Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Medalist Diversified.
Diversification Opportunities for Global Net and Medalist Diversified
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Medalist is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease, and Medalist Diversified Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medalist Diversified Reit 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 Medalist Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medalist Diversified Reit has no effect on the direction of Global Net i.e., Global Net and Medalist Diversified go up and down completely randomly.
Pair Corralation between Global Net and Medalist Diversified
Considering the 90-day investment horizon Global Net Lease, is expected to under-perform the Medalist Diversified. But the stock apears to be less risky and, when comparing its historical volatility, Global Net Lease, is 2.03 times less risky than Medalist Diversified. The stock trades about -0.17 of its potential returns per unit of risk. The Medalist Diversified Reit is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Medalist Diversified Reit on August 31, 2024 and sell it today you would earn a total of 200.00 from holding Medalist Diversified Reit or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Net Lease, vs. Medalist Diversified Reit
Performance |
| Timeline |
| Global Net Lease, |
| Medalist Diversified Reit |
Global Net and Medalist Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Medalist Diversified
The main advantage of trading using opposite Global Net and Medalist Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, Medalist Diversified 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 Medalist Diversified will offset losses from the drop in Medalist Diversified'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 |
| Medalist Diversified vs. Medallion Bank PR | Medalist Diversified vs. Sotherly Hotels PR | Medalist Diversified vs. Healthcare Trust PR | Medalist Diversified vs. Sotherly Hotels Series |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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