Correlation Between VICI Properties and Presidio Property
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Presidio Property 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 Presidio Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Presidio Property Trust, you can compare the effects of market volatilities on VICI Properties and Presidio Property 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 Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Presidio Property.
Diversification Opportunities for VICI Properties and Presidio Property
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between VICI and Presidio is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust 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 Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of VICI Properties i.e., VICI Properties and Presidio Property go up and down completely randomly.
Pair Corralation between VICI Properties and Presidio Property
Given the investment horizon of 90 days VICI Properties is expected to under-perform the Presidio Property. But the stock apears to be less risky and, when comparing its historical volatility, VICI Properties is 5.35 times less risky than Presidio Property. The stock trades about -0.01 of its potential returns per unit of risk. The Presidio Property Trust is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Presidio Property Trust on August 29, 2024 and sell it today you would lose (2.00) from holding Presidio Property Trust or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Presidio Property Trust
Performance |
| Timeline |
| VICI Properties |
| Presidio Property Trust |
VICI Properties and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Presidio Property
The main advantage of trading using opposite VICI Properties and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Presidio Property 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 Presidio Property will offset losses from the drop in Presidio Property's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Presidio Property vs. VICI Properties | Presidio Property vs. Essential Properties Realty | Presidio Property vs. Empire State Realty | Presidio Property vs. American Assets Trust |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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