Correlation Between Land Securities and Inland Real
Can any of the company-specific risk be diversified away by investing in both Land Securities and Inland Real 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 Inland Real 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 Inland Real Estateome, you can compare the effects of market volatilities on Land Securities and Inland Real 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 Inland Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land Securities and Inland Real.
Diversification Opportunities for Land Securities and Inland Real
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Land and Inland is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Land Securities Group and Inland Real Estateome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inland Real Estateome 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 Inland Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inland Real Estateome has no effect on the direction of Land Securities i.e., Land Securities and Inland Real go up and down completely randomly.
Pair Corralation between Land Securities and Inland Real
Assuming the 90 days horizon Land Securities Group is expected to under-perform the Inland Real. But the pink sheet apears to be less risky and, when comparing its historical volatility, Land Securities Group is 1.54 times less risky than Inland Real. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Inland Real Estateome is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,125 in Inland Real Estateome on August 23, 2024 and sell it today you would lose (25.00) from holding Inland Real Estateome or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Land Securities Group vs. Inland Real Estateome
Performance |
| Timeline |
| Land Securities Group |
| Inland Real Estateome |
Land Securities and Inland Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land Securities and Inland Real
The main advantage of trading using opposite Land Securities and Inland Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land Securities position performs unexpectedly, Inland Real 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 Inland Real will offset losses from the drop in Inland Real's long position.| Land Securities vs. CT Real Estate | Land Securities vs. Smart REIT | Land Securities vs. Slate Grocery REIT | Land Securities vs. Phillips Edison Co |
| Inland Real vs. Global Net Lease, | Inland Real vs. Brightspire Capital | Inland Real vs. NexPoint Strategic Opportunities |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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