Correlation Between VICI Properties and Whitestone REIT
Can any of the company-specific risk be diversified away by investing in both VICI Properties and Whitestone REIT 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 Whitestone REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and Whitestone REIT, you can compare the effects of market volatilities on VICI Properties and Whitestone REIT 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 Whitestone REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Whitestone REIT.
Diversification Opportunities for VICI Properties and Whitestone REIT
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VICI and Whitestone is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Whitestone REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitestone REIT 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 Whitestone REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitestone REIT has no effect on the direction of VICI Properties i.e., VICI Properties and Whitestone REIT go up and down completely randomly.
Pair Corralation between VICI Properties and Whitestone REIT
Given the investment horizon of 90 days VICI Properties is expected to generate 5.01 times less return on investment than Whitestone REIT. But when comparing it to its historical volatility, VICI Properties is 1.11 times less risky than Whitestone REIT. It trades about 0.05 of its potential returns per unit of risk. Whitestone REIT is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,412 in Whitestone REIT on August 30, 2024 and sell it today you would earn a total of 76.00 from holding Whitestone REIT or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. Whitestone REIT
Performance |
| Timeline |
| VICI Properties |
| Whitestone REIT |
VICI Properties and Whitestone REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and Whitestone REIT
The main advantage of trading using opposite VICI Properties and Whitestone REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Whitestone REIT 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 Whitestone REIT will offset losses from the drop in Whitestone REIT's long position.| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
| Whitestone REIT vs. Saul Centers | Whitestone REIT vs. Site Centers Corp | Whitestone REIT vs. Kite Realty Group | Whitestone REIT vs. Acadia Realty 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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