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 |
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
Performance |
Timeline |
STORE Capital Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Land Securities Group |
STORE Capital and Land Securities Volatility Contrast
Predicted Return Density |
Returns |
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.STORE Capital vs. Renesas Electronics | STORE Capital vs. Plexus Corp | STORE Capital vs. NETGEAR | STORE Capital vs. Vita Coco |
Land Securities vs. Land Securities Group | Land Securities vs. British Land | Land Securities vs. Taylor Wimpey PLC | Land Securities vs. Klpierre SA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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