Correlation Between Power REIT and Global Net
Can any of the company-specific risk be diversified away by investing in both Power REIT and Global Net 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 Power REIT and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power REIT and Global Net Lease, you can compare the effects of market volatilities on Power REIT and Global Net 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 Power REIT with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power REIT and Global Net.
Diversification Opportunities for Power REIT and Global Net
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Power and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Power REIT and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Power REIT 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 Power REIT are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Power REIT i.e., Power REIT and Global Net go up and down completely randomly.
Pair Corralation between Power REIT and Global Net
If you would invest 0.00 in Global Net Lease on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Global Net Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Power REIT vs. Global Net Lease
Performance |
| Timeline |
| Power REIT |
| Global Net Lease |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Power REIT and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power REIT and Global Net
The main advantage of trading using opposite Power REIT and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power REIT position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Power REIT vs. Broadstone Net Lease | Power REIT vs. Armada Hflr Pr | Power REIT vs. Brightspire Capital | Power REIT vs. Safehold |
| Global Net vs. Summit Materials | Global Net vs. Perseus Mining Limited | Global Net vs. Chemours Co | Global Net vs. Uranium Energy Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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