Correlation Between VICI Properties and Brightspire Capital
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Brightspire Capital 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 Brightspire Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Brightspire Capital, you can compare the effects of market volatilities on VICI Properties and Brightspire Capital 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 Brightspire Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Brightspire Capital.
Diversification Opportunities for VICI Properties and Brightspire Capital
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VICI and Brightspire is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Brightspire Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightspire Capital 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 Brightspire Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightspire Capital has no effect on the direction of VICI Properties i.e., VICI Properties and Brightspire Capital go up and down completely randomly.
Pair Corralation between VICI Properties and Brightspire Capital
Given the investment horizon of 90 days VICI Properties is expected to generate 30.15 times less return on investment than Brightspire Capital. But when comparing it to its historical volatility, VICI Properties is 4.12 times less risky than Brightspire Capital. It trades about 0.03 of its potential returns per unit of risk. Brightspire Capital is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Brightspire Capital on August 28, 2024 and sell it today you would earn a total of 101.00 from holding Brightspire Capital or generate 19.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Brightspire Capital
Performance |
| Timeline |
| VICI Properties |
| Brightspire Capital |
VICI Properties and Brightspire Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Brightspire Capital
The main advantage of trading using opposite VICI Properties and Brightspire Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Brightspire Capital 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 Brightspire Capital will offset losses from the drop in Brightspire Capital's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Brightspire Capital vs. Essential Properties Realty | Brightspire Capital vs. Armada Hflr Pr | Brightspire Capital vs. CTO Realty Growth | Brightspire Capital vs. Modiv Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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