Correlation Between STORE Capital and HR Real

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

By analyzing existing cross correlation between STORE Capital Corp and HR Real Estate, you can compare the effects of market volatilities on STORE Capital and HR 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 STORE Capital with a short position of HR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of STORE Capital and HR Real.

Diversification Opportunities for STORE Capital and HR Real

0.0

Correlation Coefficient

STORE Capital  HR Real

Pay attention - limited upside

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

Pair Corralation between STORE Capital and HR Real

If you would invest  673.00  in HR Real Estate on December 28, 2024 and sell it today you would earn a total of  37.00  from holding HR Real Estate or generate 5.5% return on investment over 90 days.

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

STORE Capital Corp  vs.  HR Real Estate

STORE Capital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days STORE Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, STORE Capital is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

HR Real Estate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HR Real Estate are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, HR Real may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with STORE Capital and HR Real

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

The idea behind STORE Capital Corp and HR 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.