Correlation Between VICI Properties and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Cohen Steers 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 Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Cohen Steers Realty, you can compare the effects of market volatilities on VICI Properties and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Cohen Steers.
Diversification Opportunities for VICI Properties and Cohen Steers
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VICI and Cohen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Realty has no effect on the direction of VICI Properties i.e., VICI Properties and Cohen Steers go up and down completely randomly.
Pair Corralation between VICI Properties and Cohen Steers
Given the investment horizon of 90 days VICI Properties is expected to generate 2.2 times less return on investment than Cohen Steers. In addition to that, VICI Properties is 1.03 times more volatile than Cohen Steers Realty. It trades about 0.03 of its total potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.07 per unit of volatility. If you would invest 7,125 in Cohen Steers Realty on August 31, 2024 and sell it today you would earn a total of 98.00 from holding Cohen Steers Realty or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Cohen Steers Realty
Performance |
| Timeline |
| VICI Properties |
| Cohen Steers Realty |
VICI Properties and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Cohen Steers
The main advantage of trading using opposite VICI Properties and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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