Correlation Between VICI Properties and Gaming Leisure
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Gaming Leisure 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 Gaming Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Gaming Leisure Properties, you can compare the effects of market volatilities on VICI Properties and Gaming Leisure 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 Gaming Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Gaming Leisure.
Diversification Opportunities for VICI Properties and Gaming Leisure
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VICI and Gaming is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Gaming Leisure Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Leisure 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 Gaming Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Leisure Properties has no effect on the direction of VICI Properties i.e., VICI Properties and Gaming Leisure go up and down completely randomly.
Pair Corralation between VICI Properties and Gaming Leisure
Given the investment horizon of 90 days VICI Properties is expected to generate 1.1 times less return on investment than Gaming Leisure. In addition to that, VICI Properties is 1.06 times more volatile than Gaming Leisure Properties. It trades about 0.02 of its total potential returns per unit of risk. Gaming Leisure Properties is currently generating about 0.02 per unit of volatility. If you would invest 4,620 in Gaming Leisure Properties on August 24, 2024 and sell it today you would earn a total of 445.00 from holding Gaming Leisure Properties or generate 9.63% 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. Gaming Leisure Properties
Performance |
| Timeline |
| VICI Properties |
| Gaming Leisure Properties |
VICI Properties and Gaming Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Gaming Leisure
The main advantage of trading using opposite VICI Properties and Gaming Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Gaming Leisure 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 Gaming Leisure will offset losses from the drop in Gaming Leisure's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Gaming Leisure vs. VICI Properties | Gaming Leisure vs. Brixmor Property | Gaming Leisure vs. Sabra Healthcare REIT | Gaming Leisure vs. CubeSmart |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |