Correlation Between VICI Properties and Stockland
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Stockland 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 Stockland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Stockland, you can compare the effects of market volatilities on VICI Properties and Stockland 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 Stockland. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Stockland.
Diversification Opportunities for VICI Properties and Stockland
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VICI and Stockland is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Stockland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stockland 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 Stockland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stockland has no effect on the direction of VICI Properties i.e., VICI Properties and Stockland go up and down completely randomly.
Pair Corralation between VICI Properties and Stockland
Given the investment horizon of 90 days VICI Properties is expected to generate 10.59 times less return on investment than Stockland. But when comparing it to its historical volatility, VICI Properties is 4.26 times less risky than Stockland. It trades about 0.02 of its potential returns per unit of risk. Stockland is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Stockland on August 30, 2024 and sell it today you would earn a total of 114.00 from holding Stockland or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.68% |
| Values | Daily Returns |
VICI Properties vs. Stockland
Performance |
| Timeline |
| VICI Properties |
| Stockland |
VICI Properties and Stockland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Stockland
The main advantage of trading using opposite VICI Properties and Stockland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Stockland 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 Stockland will offset losses from the drop in Stockland's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |