Correlation Between VICI Properties and Farmland Partners
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Farmland Partners 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 Farmland Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Farmland Partners, you can compare the effects of market volatilities on VICI Properties and Farmland Partners 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 Farmland Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Farmland Partners.
Diversification Opportunities for VICI Properties and Farmland Partners
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VICI and Farmland is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Farmland Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmland Partners 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 Farmland Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmland Partners has no effect on the direction of VICI Properties i.e., VICI Properties and Farmland Partners go up and down completely randomly.
Pair Corralation between VICI Properties and Farmland Partners
Given the investment horizon of 90 days VICI Properties is expected to generate 22.36 times less return on investment than Farmland Partners. But when comparing it to its historical volatility, VICI Properties is 1.72 times less risky than Farmland Partners. It trades about 0.03 of its potential returns per unit of risk. Farmland Partners is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,110 in Farmland Partners on August 27, 2024 and sell it today you would earn a total of 166.00 from holding Farmland Partners or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Farmland Partners
Performance |
| Timeline |
| VICI Properties |
| Farmland Partners |
VICI Properties and Farmland Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Farmland Partners
The main advantage of trading using opposite VICI Properties and Farmland Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Farmland Partners 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 Farmland Partners will offset losses from the drop in Farmland Partners' long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Farmland Partners vs. Broadstone Net Lease | Farmland Partners vs. Armada Hflr Pr | Farmland Partners vs. Brightspire Capital | Farmland Partners 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |