Correlation Between Ready Capital and Global Net
Can any of the company-specific risk be diversified away by investing in both Ready Capital 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 Ready Capital and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ready Capital Corp and Global Net Lease, you can compare the effects of market volatilities on Ready Capital 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 Ready Capital with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ready Capital and Global Net.
Diversification Opportunities for Ready Capital and Global Net
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ready and Global is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ready Capital Corp 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 Ready 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 Ready Capital Corp 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 Ready Capital i.e., Ready Capital and Global Net go up and down completely randomly.
Pair Corralation between Ready Capital and Global Net
Allowing for the 90-day total investment horizon Ready Capital Corp is expected to under-perform the Global Net. In addition to that, Ready Capital is 1.58 times more volatile than Global Net Lease. It trades about -0.04 of its total potential returns per unit of risk. Global Net Lease is currently generating about 0.09 per unit of volatility. If you would invest 1,828 in Global Net Lease on August 27, 2024 and sell it today you would earn a total of 489.00 from holding Global Net Lease or generate 26.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ready Capital Corp vs. Global Net Lease
Performance |
| Timeline |
| Ready Capital Corp |
| Global Net Lease |
Ready Capital and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ready Capital and Global Net
The main advantage of trading using opposite Ready Capital and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ready Capital 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.| Ready Capital vs. Blackstone Mortgage Trust | Ready Capital vs. Omega Healthcare Investors | Ready Capital vs. Medical Properties Trust |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |