Correlation Between NYSE Composite and VICI Properties
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and VICI Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and VICI Properties, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of VICI Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and VICI Properties.
Diversification Opportunities for NYSE Composite and VICI Properties
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and VICI is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and VICI Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VICI Properties and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and VICI Properties go up and down completely randomly.
Pair Corralation between NYSE Composite and VICI Properties
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.4 times more return on investment than VICI Properties. However, NYSE Composite is 2.48 times less risky than VICI Properties. It trades about 0.42 of its potential returns per unit of risk. VICI Properties is currently generating about 0.1 per unit of risk. If you would invest 1,909,542 in NYSE Composite on November 2, 2024 and sell it today you would earn a total of 107,080 from holding NYSE Composite or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. VICI Properties
Performance |
| Timeline |
NYSE Composite and VICI Properties Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
VICI Properties
Pair trading matchups for VICI Properties
Pair Trading with NYSE Composite and VICI Properties
The main advantage of trading using opposite NYSE Composite and VICI Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Western Copper and | NYSE Composite vs. Chemours Co | NYSE Composite vs. IPG Photonics | NYSE Composite vs. Morgan Advanced Materials |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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