Correlation Between Safehold and Generationome Properties
Can any of the company-specific risk be diversified away by investing in both Safehold and Generationome 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 Safehold and Generationome Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safehold and Generationome Properties, you can compare the effects of market volatilities on Safehold and Generationome 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 Safehold with a short position of Generationome Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safehold and Generationome Properties.
Diversification Opportunities for Safehold and Generationome Properties
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Safehold and Generationome is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Safehold and Generationome Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generationome Properties and Safehold 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 Safehold are associated (or correlated) with Generationome Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generationome Properties has no effect on the direction of Safehold i.e., Safehold and Generationome Properties go up and down completely randomly.
Pair Corralation between Safehold and Generationome Properties
Given the investment horizon of 90 days Safehold is expected to generate 2.36 times more return on investment than Generationome Properties. However, Safehold is 2.36 times more volatile than Generationome Properties. It trades about 0.02 of its potential returns per unit of risk. Generationome Properties is currently generating about -0.11 per unit of risk. If you would invest 1,700 in Safehold on November 18, 2024 and sell it today you would earn a total of 2.00 from holding Safehold or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safehold vs. Generationome Properties
Performance |
| Timeline |
| Safehold |
| Generationome Properties |
Safehold and Generationome Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safehold and Generationome Properties
The main advantage of trading using opposite Safehold and Generationome Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safehold position performs unexpectedly, Generationome 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 Generationome Properties will offset losses from the drop in Generationome Properties' long position.| Safehold vs. Essential Properties Realty | Safehold vs. Broadstone Net Lease | Safehold vs. Armada Hflr Pr | Safehold vs. CTO Realty Growth |
| Generationome Properties vs. One Liberty Properties | Generationome Properties vs. Modiv Inc | Generationome Properties vs. Armada Hflr Pr | Generationome Properties vs. Presidio Property Trust |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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