Correlation Between VICI Properties and Goldman Sachs

Can any of the company-specific risk be diversified away by investing in both VICI Properties and Goldman Sachs 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 Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VICI Properties and Goldman Sachs Real, you can compare the effects of market volatilities on VICI Properties and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Goldman Sachs.

Diversification Opportunities for VICI Properties and Goldman Sachs

0.61

Correlation Coefficient

VICI Properties  Goldman Sachs

Poor diversification

The 3 months correlation between VICI and Goldman is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Goldman Sachs Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Real 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Real has no effect on the direction of VICI Properties i.e., VICI Properties and Goldman Sachs go up and down completely randomly.

Pair Corralation between VICI Properties and Goldman Sachs

Given the investment horizon of 90 days VICI Properties is expected to generate 0.83 times more return on investment than Goldman Sachs. However, VICI Properties is 1.2 times less risky than Goldman Sachs. It trades about -0.11 of its potential returns per unit of risk. Goldman Sachs Real is currently generating about -0.11 per unit of risk. If you would invest  3,306  in VICI Properties on September 18, 2024 and sell it today you would lose (213.00) from holding VICI Properties or give up 6.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

VICI Properties  vs.  Goldman Sachs Real

VICI Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VICI Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Goldman Sachs Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Real has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest unfluctuating performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with VICI Properties and Goldman Sachs

The main advantage of trading using opposite VICI Properties and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.

The idea behind VICI Properties and Goldman Sachs Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..