Correlation Between VICI Properties and Medalist Diversified
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Medalist Diversified 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 Medalist Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Medalist Diversified Reit, you can compare the effects of market volatilities on VICI Properties and Medalist Diversified 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 Medalist Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Medalist Diversified.
Diversification Opportunities for VICI Properties and Medalist Diversified
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VICI and Medalist is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Medalist Diversified Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medalist Diversified Reit 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 Medalist Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medalist Diversified Reit has no effect on the direction of VICI Properties i.e., VICI Properties and Medalist Diversified go up and down completely randomly.
Pair Corralation between VICI Properties and Medalist Diversified
Given the investment horizon of 90 days VICI Properties is expected to under-perform the Medalist Diversified. But the stock apears to be less risky and, when comparing its historical volatility, VICI Properties is 2.94 times less risky than Medalist Diversified. The stock trades about -0.01 of its potential returns per unit of risk. The Medalist Diversified Reit is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,425 in Medalist Diversified Reit on August 27, 2024 and sell it today you would earn a total of 105.00 from holding Medalist Diversified Reit or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Medalist Diversified Reit
Performance |
| Timeline |
| VICI Properties |
| Medalist Diversified Reit |
VICI Properties and Medalist Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Medalist Diversified
The main advantage of trading using opposite VICI Properties and Medalist Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Medalist Diversified 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 Medalist Diversified will offset losses from the drop in Medalist Diversified's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Medalist Diversified vs. Medallion Bank PR | Medalist Diversified vs. Sotherly Hotels PR | Medalist Diversified vs. Healthcare Trust PR | Medalist Diversified vs. Sotherly Hotels Series |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |