Correlation Between VICI Properties and NexPoint Diversified
Can any of the company-specific risk be diversified away by investing in both VICI Properties and NexPoint 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 NexPoint 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 NexPoint Diversified Real, you can compare the effects of market volatilities on VICI Properties and NexPoint 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 NexPoint Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and NexPoint Diversified.
Diversification Opportunities for VICI Properties and NexPoint Diversified
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VICI and NexPoint is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and NexPoint Diversified Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexPoint Diversified Real 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 NexPoint Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexPoint Diversified Real has no effect on the direction of VICI Properties i.e., VICI Properties and NexPoint Diversified go up and down completely randomly.
Pair Corralation between VICI Properties and NexPoint Diversified
Given the investment horizon of 90 days VICI Properties is expected to under-perform the NexPoint Diversified. But the stock apears to be less risky and, when comparing its historical volatility, VICI Properties is 1.17 times less risky than NexPoint Diversified. The stock trades about -0.04 of its potential returns per unit of risk. The NexPoint Diversified Real is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,576 in NexPoint Diversified Real on November 18, 2024 and sell it today you would lose (16.00) from holding NexPoint Diversified Real or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. NexPoint Diversified Real
Performance |
| Timeline |
| VICI Properties |
| NexPoint Diversified Real |
VICI Properties and NexPoint Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and NexPoint Diversified
The main advantage of trading using opposite VICI Properties and NexPoint Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, NexPoint 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 NexPoint Diversified will offset losses from the drop in NexPoint 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 |
| NexPoint Diversified vs. NexPoint Strategic Opportunities | NexPoint Diversified vs. Prospect Capital | NexPoint Diversified vs. Ready Capital | NexPoint Diversified vs. SiriusPoint |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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