Correlation Between VICI Properties and Land Securities
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Land Securities 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 Land Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Land Securities Group, you can compare the effects of market volatilities on VICI Properties and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Land Securities.
Diversification Opportunities for VICI Properties and Land Securities
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VICI and Land is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of VICI Properties i.e., VICI Properties and Land Securities go up and down completely randomly.
Pair Corralation between VICI Properties and Land Securities
Given the investment horizon of 90 days VICI Properties is expected to generate 0.25 times more return on investment than Land Securities. However, VICI Properties is 4.04 times less risky than Land Securities. It trades about 0.01 of its potential returns per unit of risk. Land Securities Group is currently generating about -0.01 per unit of risk. If you would invest 3,236 in VICI Properties on August 29, 2024 and sell it today you would earn a total of 2.00 from holding VICI Properties or generate 0.06% 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. Land Securities Group
Performance |
| Timeline |
| VICI Properties |
| Land Securities Group |
VICI Properties and Land Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Land Securities
The main advantage of trading using opposite VICI Properties and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Land Securities vs. Akanda Corp | Land Securities vs. Aquestive Therapeutics | Land Securities vs. Electrovaya Common Shares | Land Securities vs. Viemed Healthcare |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |