Correlation Between Inventrust Properties and Gaming Leisure
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties and Gaming Leisure 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 Inventrust Properties and Gaming Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventrust Properties Corp and Gaming Leisure Properties, you can compare the effects of market volatilities on Inventrust Properties and Gaming Leisure 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 Inventrust Properties with a short position of Gaming Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Gaming Leisure.
Diversification Opportunities for Inventrust Properties and Gaming Leisure
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inventrust and Gaming is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp and Gaming Leisure Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Leisure Properties and Inventrust Properties 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 Inventrust Properties Corp are associated (or correlated) with Gaming Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Leisure Properties has no effect on the direction of Inventrust Properties i.e., Inventrust Properties and Gaming Leisure go up and down completely randomly.
Pair Corralation between Inventrust Properties and Gaming Leisure
Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 1.1 times more return on investment than Gaming Leisure. However, Inventrust Properties is 1.1 times more volatile than Gaming Leisure Properties. It trades about 0.17 of its potential returns per unit of risk. Gaming Leisure Properties is currently generating about 0.14 per unit of risk. If you would invest 2,475 in Inventrust Properties Corp on August 30, 2024 and sell it today you would earn a total of 655.00 from holding Inventrust Properties Corp or generate 26.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventrust Properties Corp vs. Gaming Leisure Properties
Performance |
| Timeline |
| Inventrust Properties |
| Gaming Leisure Properties |
Inventrust Properties and Gaming Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventrust Properties and Gaming Leisure
The main advantage of trading using opposite Inventrust Properties and Gaming Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties position performs unexpectedly, Gaming Leisure 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 Gaming Leisure will offset losses from the drop in Gaming Leisure's long position.| Inventrust Properties vs. Saul Centers | Inventrust Properties vs. Site Centers Corp | Inventrust Properties vs. Acadia Realty Trust | Inventrust Properties vs. Retail Opportunity Investments |
| Gaming Leisure vs. VICI Properties | Gaming Leisure vs. Brixmor Property | Gaming Leisure vs. Sabra Healthcare REIT | Gaming Leisure vs. CubeSmart |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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