Correlation Between VICI Properties and Invesco Real

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

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

Diversification Opportunities for VICI Properties and Invesco Real

0.9

Correlation Coefficient

VICI Properties  Invesco Real

Almost no diversification

The 3 months correlation between VICI and Invesco is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Invesco Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Real Estate 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 Invesco Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Real Estate has no effect on the direction of VICI Properties i.e., VICI Properties and Invesco Real go up and down completely randomly.

Pair Corralation between VICI Properties and Invesco Real

Given the investment horizon of 90 days VICI Properties is expected to generate 2.95 times less return on investment than Invesco Real. In addition to that, VICI Properties is 1.05 times more volatile than Invesco Real Estate. It trades about 0.0 of its total potential returns per unit of risk. Invesco Real Estate is currently generating about 0.02 per unit of volatility. If you would invest  1,572  in Invesco Real Estate on September 20, 2024 and sell it today you would earn a total of  88.00  from holding Invesco Real Estate or generate 5.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

VICI Properties  vs.  Invesco Real Estate

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.

Invesco Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Invesco Real Estate 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 Invesco Real

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

The idea behind VICI Properties and Invesco Real Estate 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.