Correlation Between Gladstone Land and EPR Properties
Can any of the company-specific risk be diversified away by investing in both Gladstone Land and EPR 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 Gladstone Land and EPR Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Land Corp and EPR Properties Series, you can compare the effects of market volatilities on Gladstone Land and EPR 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 Gladstone Land with a short position of EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Land and EPR Properties.
Diversification Opportunities for Gladstone Land and EPR Properties
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and EPR is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Land Corp and EPR Properties Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR Properties Series and Gladstone Land 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 Gladstone Land Corp are associated (or correlated) with EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties Series has no effect on the direction of Gladstone Land i.e., Gladstone Land and EPR Properties go up and down completely randomly.
Pair Corralation between Gladstone Land and EPR Properties
Assuming the 90 days horizon Gladstone Land is expected to generate 1.59 times less return on investment than EPR Properties. But when comparing it to its historical volatility, Gladstone Land Corp is 2.05 times less risky than EPR Properties. It trades about 0.13 of its potential returns per unit of risk. EPR Properties Series is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,690 in EPR Properties Series on September 1, 2024 and sell it today you would earn a total of 268.00 from holding EPR Properties Series or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Gladstone Land Corp vs. EPR Properties Series
Performance |
| Timeline |
| Gladstone Land Corp |
| EPR Properties Series |
Gladstone Land and EPR Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Land and EPR Properties
The main advantage of trading using opposite Gladstone Land and EPR Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Land position performs unexpectedly, EPR 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 EPR Properties will offset losses from the drop in EPR Properties' long position.| Gladstone Land vs. EPR Properties | Gladstone Land vs. Digital Realty Trust | Gladstone Land vs. EPR Properties Series | Gladstone Land vs. Digital Realty Trust |
| EPR Properties vs. EPR Properties | EPR Properties vs. EPR Properties | EPR Properties vs. Lexington Realty Trust | EPR Properties vs. RLJ Lodging Trust |
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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