Correlation Between VICI Properties and First Industrial
Can any of the company-specific risk be diversified away by investing in both VICI Properties and First Industrial 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 First Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and First Industrial Realty, you can compare the effects of market volatilities on VICI Properties and First Industrial 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 First Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and First Industrial.
Diversification Opportunities for VICI Properties and First Industrial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VICI and First is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and First Industrial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Industrial 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 First Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Industrial Realty has no effect on the direction of VICI Properties i.e., VICI Properties and First Industrial go up and down completely randomly.
Pair Corralation between VICI Properties and First Industrial
Given the investment horizon of 90 days VICI Properties is expected to generate 0.88 times more return on investment than First Industrial. However, VICI Properties is 1.13 times less risky than First Industrial. It trades about 0.12 of its potential returns per unit of risk. First Industrial Realty is currently generating about 0.11 per unit of risk. If you would invest 2,798 in VICI Properties on August 31, 2024 and sell it today you would earn a total of 463.00 from holding VICI Properties or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. First Industrial Realty
Performance |
| Timeline |
| VICI Properties |
| First Industrial Realty |
VICI Properties and First Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and First Industrial
The main advantage of trading using opposite VICI Properties and First Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, First Industrial 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 First Industrial will offset losses from the drop in First Industrial's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| First Industrial vs. LXP Industrial Trust | First Industrial vs. Plymouth Industrial REIT | First Industrial vs. Global Self Storage | First Industrial vs. Terreno Realty |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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