Correlation Between Newlake Capital and Gaming Leisure
Can any of the company-specific risk be diversified away by investing in both Newlake Capital 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 Newlake Capital and Gaming Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newlake Capital Partners and Gaming Leisure Properties, you can compare the effects of market volatilities on Newlake Capital 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 Newlake Capital with a short position of Gaming Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newlake Capital and Gaming Leisure.
Diversification Opportunities for Newlake Capital and Gaming Leisure
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newlake and Gaming is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Newlake Capital Partners 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 Newlake Capital 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 Newlake Capital Partners 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 Newlake Capital i.e., Newlake Capital and Gaming Leisure go up and down completely randomly.
Pair Corralation between Newlake Capital and Gaming Leisure
Given the investment horizon of 90 days Newlake Capital is expected to generate 1.03 times less return on investment than Gaming Leisure. In addition to that, Newlake Capital is 1.37 times more volatile than Gaming Leisure Properties. It trades about 0.04 of its total potential returns per unit of risk. Gaming Leisure Properties is currently generating about 0.05 per unit of volatility. If you would invest 4,261 in Gaming Leisure Properties on November 4, 2024 and sell it today you would earn a total of 578.00 from holding Gaming Leisure Properties or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newlake Capital Partners vs. Gaming Leisure Properties
Performance |
| Timeline |
| Newlake Capital Partners |
| Gaming Leisure Properties |
Newlake Capital and Gaming Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newlake Capital and Gaming Leisure
The main advantage of trading using opposite Newlake Capital and Gaming Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newlake Capital 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.| Newlake Capital vs. AFC Gamma | Newlake Capital vs. Alpineome Property Trust | Newlake Capital vs. Chicago Atlantic Real | Newlake Capital vs. Power REIT |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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