Correlation Between STORE Capital and Land Securities

Can any of the company-specific risk be diversified away by investing in both STORE Capital and Land Securities 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 Land Securities 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 Land Securities Group, you can compare the effects of market volatilities on STORE Capital and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of STORE Capital and Land Securities.

Diversification Opportunities for STORE Capital and Land Securities

0.0

Correlation Coefficient

STORE Capital  Land Securities

Pay attention - limited upside

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

Pair Corralation between STORE Capital and Land Securities

If you would invest  704.00  in Land Securities Group on December 28, 2024 and sell it today you would lose (10.00) from holding Land Securities Group or give up 1.42% of portfolio value over 90 days.

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

STORE Capital Corp  vs.  Land Securities Group

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.

Land Securities Group

Risk-Adjusted Performance

Insignificant

Over the last 90 days Land Securities Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Land Securities is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with STORE Capital and Land Securities

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

The idea behind STORE Capital Corp and Land Securities Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.