Correlation Between W P and Medalist Diversified
Can any of the company-specific risk be diversified away by investing in both W P and Medalist Diversified 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 W P and Medalist Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between W P Carey and Medalist Diversified Reit, you can compare the effects of market volatilities on W P and Medalist Diversified 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 W P with a short position of Medalist Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of W P and Medalist Diversified.
Diversification Opportunities for W P and Medalist Diversified
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WPC and Medalist is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding W P Carey and Medalist Diversified Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medalist Diversified Reit and W P 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 W P Carey are associated (or correlated) with Medalist Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medalist Diversified Reit has no effect on the direction of W P i.e., W P and Medalist Diversified go up and down completely randomly.
Pair Corralation between W P and Medalist Diversified
Considering the 90-day investment horizon W P is expected to generate 3.62 times less return on investment than Medalist Diversified. But when comparing it to its historical volatility, W P Carey is 3.34 times less risky than Medalist Diversified. It trades about 0.12 of its potential returns per unit of risk. Medalist Diversified Reit is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Medalist Diversified Reit on August 31, 2024 and sell it today you would earn a total of 200.00 from holding Medalist Diversified Reit or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
W P Carey vs. Medalist Diversified Reit
Performance |
| Timeline |
| W P Carey |
| Medalist Diversified Reit |
W P and Medalist Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with W P and Medalist Diversified
The main advantage of trading using opposite W P and Medalist Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if W P position performs unexpectedly, Medalist Diversified 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 Medalist Diversified will offset losses from the drop in Medalist Diversified's long position.| W P vs. STAG Industrial | W P vs. National Retail Properties | W P vs. Medical Properties Trust | W P vs. Omega Healthcare Investors |
| Medalist Diversified vs. Medallion Bank PR | Medalist Diversified vs. Sotherly Hotels PR | Medalist Diversified vs. Healthcare Trust PR | Medalist Diversified vs. Sotherly Hotels Series |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |