Correlation Between GLENLN and EPR Properties

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

By analyzing existing cross correlation between GLENLN 4 16 APR 25 and EPR Properties Series, you can compare the effects of market volatilities on GLENLN and EPR Properties 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 GLENLN with a short position of EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLENLN and EPR Properties.

Diversification Opportunities for GLENLN and EPR Properties

0.07

Correlation Coefficient

GLENLN  EPR Properties

Significant diversification

The 3 months correlation between GLENLN and EPR is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding GLENLN 4 16 APR 25 and EPR Properties Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR Properties Series and GLENLN 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 GLENLN 4 16 APR 25 are associated (or correlated) with EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties Series has no effect on the direction of GLENLN i.e., GLENLN and EPR Properties go up and down completely randomly.

Pair Corralation between GLENLN and EPR Properties

Assuming the 90 days trading horizon GLENLN 4 16 APR 25 is expected to generate 0.24 times more return on investment than EPR Properties. However, GLENLN 4 16 APR 25 is 4.14 times less risky than EPR Properties. It trades about 0.03 of its potential returns per unit of risk. EPR Properties Series is currently generating about -0.23 per unit of risk. If you would invest  9,945  in GLENLN 4 16 APR 25 on August 31, 2024 and sell it today you would earn a total of  4.00  from holding GLENLN 4 16 APR 25 or generate 0.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	45.45%
Values	Daily Returns

GLENLN 4 16 APR 25  vs.  EPR Properties Series

GLENLN 4 16

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GLENLN 4 16 APR 25 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, GLENLN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

EPR Properties Series

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EPR Properties Series are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, EPR Properties is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GLENLN and EPR Properties

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

The idea behind GLENLN 4 16 APR 25 and EPR Properties Series 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.