Correlation Between Newlake Capital and VICI Properties
Can any of the company-specific risk be diversified away by investing in both Newlake Capital and VICI 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 Newlake Capital and VICI Properties 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 VICI Properties, you can compare the effects of market volatilities on Newlake Capital and VICI 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 Newlake Capital with a short position of VICI Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newlake Capital and VICI Properties.
Diversification Opportunities for Newlake Capital and VICI Properties
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Newlake and VICI is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Newlake Capital Partners and VICI Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VICI 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 VICI Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VICI Properties has no effect on the direction of Newlake Capital i.e., Newlake Capital and VICI Properties go up and down completely randomly.
Pair Corralation between Newlake Capital and VICI Properties
Given the investment horizon of 90 days Newlake Capital Partners is expected to under-perform the VICI Properties. But the otc stock apears to be less risky and, when comparing its historical volatility, Newlake Capital Partners is 1.02 times less risky than VICI Properties. The otc stock trades about -0.63 of its potential returns per unit of risk. The VICI Properties is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 3,050 in VICI Properties on October 15, 2024 and sell it today you would lose (229.00) from holding VICI Properties or give up 7.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Newlake Capital Partners vs. VICI Properties
Performance |
| Timeline |
| Newlake Capital Partners |
| VICI Properties |
Newlake Capital and VICI Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newlake Capital and VICI Properties
The main advantage of trading using opposite Newlake Capital and VICI Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newlake Capital position performs unexpectedly, VICI 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 VICI Properties will offset losses from the drop in VICI Properties' long position.| Newlake Capital vs. AFC Gamma | Newlake Capital vs. Alpineome Property Trust | Newlake Capital vs. Chicago Atlantic Real | Newlake Capital vs. Power REIT |
| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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