Correlation Between Verizon Communications and STORE Capital
Can any of the company-specific risk be diversified away by investing in both Verizon Communications and STORE Capital 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 Verizon Communications and STORE Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verizon Communications and STORE Capital Corp, you can compare the effects of market volatilities on Verizon Communications and STORE Capital 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 Verizon Communications with a short position of STORE Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verizon Communications and STORE Capital.
Diversification Opportunities for Verizon Communications and STORE Capital
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Verizon and STORE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Verizon Communications and STORE Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE Capital Corp and Verizon Communications 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 Verizon Communications are associated (or correlated) with STORE Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE Capital Corp has no effect on the direction of Verizon Communications i.e., Verizon Communications and STORE Capital go up and down completely randomly.
Pair Corralation between Verizon Communications and STORE Capital
If you would invest 3,970 in Verizon Communications on August 30, 2024 and sell it today you would earn a total of 468.00 from holding Verizon Communications or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Verizon Communications vs. STORE Capital Corp
Performance |
| Timeline |
| Verizon Communications |
| STORE Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Verizon Communications and STORE Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verizon Communications and STORE Capital
The main advantage of trading using opposite Verizon Communications and STORE Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verizon Communications position performs unexpectedly, STORE Capital 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 STORE Capital will offset losses from the drop in STORE Capital's long position.| Verizon Communications vs. T Mobile | Verizon Communications vs. Comcast Corp | Verizon Communications vs. Charter Communications | Verizon Communications vs. Vodafone Group PLC |
| STORE Capital vs. ScanSource | STORE Capital vs. Jabil Circuit | STORE Capital vs. Sphere Entertainment Co | STORE Capital vs. NETGEAR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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