Correlation Between VICI Properties and SCCG
Can any of the company-specific risk be diversified away by investing in both VICI Properties and SCCG 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 SCCG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and SCCG, you can compare the effects of market volatilities on VICI Properties and SCCG 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 SCCG. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and SCCG.
Diversification Opportunities for VICI Properties and SCCG
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VICI and SCCG is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and SCCG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCCG 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 SCCG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCCG has no effect on the direction of VICI Properties i.e., VICI Properties and SCCG go up and down completely randomly.
Pair Corralation between VICI Properties and SCCG
Given the investment horizon of 90 days VICI Properties is expected to generate 1.05 times more return on investment than SCCG. However, VICI Properties is 1.05 times more volatile than SCCG. It trades about 0.12 of its potential returns per unit of risk. SCCG is currently generating about -0.03 per unit of risk. If you would invest 2,798 in VICI Properties on August 31, 2024 and sell it today you would earn a total of 463.00 from holding VICI Properties or generate 16.55% 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. SCCG
Performance |
| Timeline |
| VICI Properties |
| SCCG |
VICI Properties and SCCG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and SCCG
The main advantage of trading using opposite VICI Properties and SCCG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, SCCG 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 SCCG will offset losses from the drop in SCCG's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| SCCG vs. Sachem Capital Corp | SCCG vs. Babcock Wilcox Enterprises, | SCCG vs. B Riley Financial, | SCCG vs. B Riley Financial |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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