Correlation Between Safehold and One Liberty
Can any of the company-specific risk be diversified away by investing in both Safehold and One Liberty 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 One Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safehold and One Liberty Properties, you can compare the effects of market volatilities on Safehold and One Liberty 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 One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safehold and One Liberty.
Diversification Opportunities for Safehold and One Liberty
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Safehold and One is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Safehold and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty 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 One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of Safehold i.e., Safehold and One Liberty go up and down completely randomly.
Pair Corralation between Safehold and One Liberty
Given the investment horizon of 90 days Safehold is expected to under-perform the One Liberty. In addition to that, Safehold is 1.38 times more volatile than One Liberty Properties. It trades about -0.17 of its total potential returns per unit of risk. One Liberty Properties is currently generating about 0.0 per unit of volatility. If you would invest 2,592 in One Liberty Properties on November 1, 2024 and sell it today you would lose (25.00) from holding One Liberty Properties or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safehold vs. One Liberty Properties
Performance |
| Timeline |
| Safehold |
| One Liberty Properties |
Safehold and One Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safehold and One Liberty
The main advantage of trading using opposite Safehold and One Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safehold position performs unexpectedly, One Liberty 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 One Liberty will offset losses from the drop in One Liberty's long position.| Safehold vs. Essential Properties Realty | Safehold vs. Broadstone Net Lease | Safehold vs. Armada Hflr Pr | Safehold vs. CTO Realty Growth |
| One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty vs. NexPoint Diversified Real |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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