Correlation Between Presidio Property and Global Net
Can any of the company-specific risk be diversified away by investing in both Presidio Property 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 Presidio Property and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and Global Net Lease,, you can compare the effects of market volatilities on Presidio Property 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 Presidio Property with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and Global Net.
Diversification Opportunities for Presidio Property and Global Net
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Presidio and Global is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust 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 Presidio Property 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 Presidio Property Trust 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 Presidio Property i.e., Presidio Property and Global Net go up and down completely randomly.
Pair Corralation between Presidio Property and Global Net
Given the investment horizon of 90 days Presidio Property Trust is expected to under-perform the Global Net. In addition to that, Presidio Property is 2.68 times more volatile than Global Net Lease,. It trades about -0.05 of its total potential returns per unit of risk. Global Net Lease, is currently generating about 0.04 per unit of volatility. If you would invest 659.00 in Global Net Lease, on August 25, 2024 and sell it today you would earn a total of 77.00 from holding Global Net Lease, or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. Global Net Lease,
Performance |
| Timeline |
| Presidio Property Trust |
| Global Net Lease, |
Presidio Property and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and Global Net
The main advantage of trading using opposite Presidio Property and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property 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.| Presidio Property vs. Investcorp Credit Management | Presidio Property vs. Medalist Diversified Reit | Presidio Property vs. Aquagold International | Presidio Property vs. Morningstar Unconstrained Allocation |
| Global Net vs. Boston Properties | Global Net vs. Alexandria Real Estate | Global Net vs. Vornado Realty Trust | Global Net vs. Highwoods Properties |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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