Correlation Between Urban Edge and VICI Properties
Can any of the company-specific risk be diversified away by investing in both Urban Edge and VICI 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 Urban Edge and VICI Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and VICI Properties, you can compare the effects of market volatilities on Urban Edge and VICI 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 Urban Edge with a short position of VICI Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and VICI Properties.
Diversification Opportunities for Urban Edge and VICI Properties
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Urban and VICI is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and VICI Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VICI Properties and Urban Edge 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 Urban Edge Properties are associated (or correlated) with VICI Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VICI Properties has no effect on the direction of Urban Edge i.e., Urban Edge and VICI Properties go up and down completely randomly.
Pair Corralation between Urban Edge and VICI Properties
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to under-perform the VICI Properties. In addition to that, Urban Edge is 1.01 times more volatile than VICI Properties. It trades about -0.13 of its total potential returns per unit of risk. VICI Properties is currently generating about 0.07 per unit of volatility. If you would invest 2,921 in VICI Properties on November 1, 2024 and sell it today you would earn a total of 63.00 from holding VICI Properties or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. VICI Properties
Performance |
| Timeline |
| Urban Edge Properties |
| VICI Properties |
Urban Edge and VICI Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and VICI Properties
The main advantage of trading using opposite Urban Edge and VICI Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge position performs unexpectedly, VICI 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 VICI Properties will offset losses from the drop in VICI Properties' long position.| Urban Edge vs. Saul Centers | Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group |
| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |