Correlation Between Retail Opportunity and Global Net
Can any of the company-specific risk be diversified away by investing in both Retail Opportunity 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 Retail Opportunity and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Opportunity Investments and Global Net Lease,, you can compare the effects of market volatilities on Retail Opportunity 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 Retail Opportunity with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Opportunity and Global Net.
Diversification Opportunities for Retail Opportunity and Global Net
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Retail and Global is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments 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 Retail Opportunity 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 Retail Opportunity Investments 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 Retail Opportunity i.e., Retail Opportunity and Global Net go up and down completely randomly.
Pair Corralation between Retail Opportunity and Global Net
Given the investment horizon of 90 days Retail Opportunity Investments is expected to generate 0.07 times more return on investment than Global Net. However, Retail Opportunity Investments is 14.62 times less risky than Global Net. It trades about 0.12 of its potential returns per unit of risk. Global Net Lease, is currently generating about -0.04 per unit of risk. If you would invest 1,745 in Retail Opportunity Investments on November 18, 2024 and sell it today you would earn a total of 4.00 from holding Retail Opportunity Investments or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Retail Opportunity Investments vs. Global Net Lease,
Performance |
| Timeline |
| Retail Opportunity |
| Global Net Lease, |
Retail Opportunity and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Opportunity and Global Net
The main advantage of trading using opposite Retail Opportunity and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Opportunity 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.| Retail Opportunity vs. Kite Realty Group | Retail Opportunity vs. Rithm Property Trust | Retail Opportunity vs. Urban Edge Properties | Retail Opportunity vs. Acadia Realty Trust |
| Global Net vs. Peakstone Realty Trust | Global Net vs. Gladstone Commercial | Global Net vs. CTO Realty Growth | Global Net vs. Brightspire Capital |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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