Correlation Between VICI Properties and Armada Hoffler
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Armada Hoffler 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 VICI Properties and Armada Hoffler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Armada Hoffler Properties, you can compare the effects of market volatilities on VICI Properties and Armada Hoffler 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 VICI Properties with a short position of Armada Hoffler. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Armada Hoffler.
Diversification Opportunities for VICI Properties and Armada Hoffler
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VICI and Armada is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Armada Hoffler Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hoffler Properties and VICI Properties 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 VICI Properties are associated (or correlated) with Armada Hoffler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hoffler Properties has no effect on the direction of VICI Properties i.e., VICI Properties and Armada Hoffler go up and down completely randomly.
Pair Corralation between VICI Properties and Armada Hoffler
Given the investment horizon of 90 days VICI Properties is expected to generate 1.27 times more return on investment than Armada Hoffler. However, VICI Properties is 1.27 times more volatile than Armada Hoffler Properties. It trades about 0.22 of its potential returns per unit of risk. Armada Hoffler Properties is currently generating about 0.0 per unit of risk. If you would invest 2,899 in VICI Properties on December 3, 2024 and sell it today you would earn a total of 350.00 from holding VICI Properties or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Armada Hoffler Properties
Performance |
| Timeline |
| VICI Properties |
| Armada Hoffler Properties |
VICI Properties and Armada Hoffler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Armada Hoffler
The main advantage of trading using opposite VICI Properties and Armada Hoffler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Armada Hoffler 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 Armada Hoffler will offset losses from the drop in Armada Hoffler's long position.| VICI Properties vs. Broadstone Net Lease | ||
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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