Correlation Between Land Securities and Covivio
Can any of the company-specific risk be diversified away by investing in both Land Securities and Covivio 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 Land Securities and Covivio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land Securities Group and Covivio, you can compare the effects of market volatilities on Land Securities and Covivio 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 Land Securities with a short position of Covivio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land Securities and Covivio.
Diversification Opportunities for Land Securities and Covivio
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Land and Covivio is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Land Securities Group and Covivio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Covivio and Land Securities 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 Land Securities Group are associated (or correlated) with Covivio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Covivio has no effect on the direction of Land Securities i.e., Land Securities and Covivio go up and down completely randomly.
Pair Corralation between Land Securities and Covivio
If you would invest 5,930 in Covivio on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Covivio 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 |
Land Securities Group vs. Covivio
Performance |
| Timeline |
| Land Securities Group |
| Covivio |
Land Securities and Covivio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land Securities and Covivio
The main advantage of trading using opposite Land Securities and Covivio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land Securities position performs unexpectedly, Covivio 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 Covivio will offset losses from the drop in Covivio's long position.| Land Securities vs. Global Net Lease, | Land Securities vs. VICI Properties | Land Securities vs. Highlands REIT | Land Securities vs. W P Carey |
| Covivio vs. Global Net Lease, | Covivio vs. VICI Properties | Covivio vs. Highlands REIT | Covivio vs. W P Carey |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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