Correlation Between VICI Properties and Uniti
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Uniti 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 Uniti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Uniti Group, you can compare the effects of market volatilities on VICI Properties and Uniti 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 Uniti. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Uniti.
Diversification Opportunities for VICI Properties and Uniti
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VICI and Uniti is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Uniti Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniti Group 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 Uniti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniti Group has no effect on the direction of VICI Properties i.e., VICI Properties and Uniti go up and down completely randomly.
Pair Corralation between VICI Properties and Uniti
Given the investment horizon of 90 days VICI Properties is expected to under-perform the Uniti. But the stock apears to be less risky and, when comparing its historical volatility, VICI Properties is 3.78 times less risky than Uniti. The stock trades about -0.02 of its potential returns per unit of risk. The Uniti Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 435.00 in Uniti Group on September 2, 2024 and sell it today you would earn a total of 156.00 from holding Uniti Group or generate 35.86% 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. Uniti Group
Performance |
| Timeline |
| VICI Properties |
| Uniti Group |
VICI Properties and Uniti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Uniti
The main advantage of trading using opposite VICI Properties and Uniti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Uniti 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 Uniti will offset losses from the drop in Uniti's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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