Correlation Between Spirit Realty and Global Net

Can any of the company-specific risk be diversified away by investing in both Spirit Realty and Global Net 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 Spirit Realty and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Spirit Realty Capital and Global Net Lease,, you can compare the effects of market volatilities on Spirit Realty and Global Net 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 Spirit Realty with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spirit Realty and Global Net.

Diversification Opportunities for Spirit Realty and Global Net

0.0

Correlation Coefficient

Spirit Realty  Global Net

Pay attention - limited upside

The 3 months correlation between Spirit and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spirit Realty Capital and Global Net Lease, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease, and Spirit Realty 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 Spirit Realty Capital are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease, has no effect on the direction of Spirit Realty i.e., Spirit Realty and Global Net go up and down completely randomly.

Pair Corralation between Spirit Realty and Global Net

If you would invest  677.00  in Global Net Lease, on December 18, 2024 and sell it today you would earn a total of  140.00  from holding Global Net Lease, or generate 20.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Spirit Realty Capital  vs.  Global Net Lease,

Spirit Realty Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spirit Realty Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Spirit Realty is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Global Net Lease,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Net Lease, are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Global Net disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spirit Realty and Global Net

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

The idea behind Spirit Realty Capital and Global Net Lease, 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.