Correlation Between VICI Properties and Regency Centers
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Regency Centers 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 Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Regency Centers, you can compare the effects of market volatilities on VICI Properties and Regency Centers 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 Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Regency Centers.
Diversification Opportunities for VICI Properties and Regency Centers
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between VICI and Regency is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of VICI Properties i.e., VICI Properties and Regency Centers go up and down completely randomly.
Pair Corralation between VICI Properties and Regency Centers
Given the investment horizon of 90 days VICI Properties is expected to generate 0.82 times more return on investment than Regency Centers. However, VICI Properties is 1.22 times less risky than Regency Centers. It trades about 0.01 of its potential returns per unit of risk. Regency Centers is currently generating about -0.15 per unit of risk. If you would invest 3,128 in VICI Properties on September 12, 2024 and sell it today you would earn a total of 3.00 from holding VICI Properties or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Regency Centers
Performance |
| Timeline |
| VICI Properties |
| Regency Centers |
VICI Properties and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Regency Centers
The main advantage of trading using opposite VICI Properties and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Regency Centers vs. Porvair plc | Regency Centers vs. Air Lease | Regency Centers vs. Kinsale Capital Group | Regency Centers vs. GoHealth |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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