Correlation Between 46188BAA0 and Global Net

Can any of the company-specific risk be diversified away by investing in both 46188BAA0 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 46188BAA0 and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INVH 2 15 AUG 31 and Global Net Lease, you can compare the effects of market volatilities on 46188BAA0 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 46188BAA0 with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of 46188BAA0 and Global Net.

Diversification Opportunities for 46188BAA0 and Global Net

0.27

Correlation Coefficient

46188BAA0  Global Net

Modest diversification

The 3 months correlation between 46188BAA0 and Global is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding INVH 2 15 AUG 31 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 46188BAA0 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 INVH 2 15 AUG 31 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 46188BAA0 i.e., 46188BAA0 and Global Net go up and down completely randomly.

Pair Corralation between 46188BAA0 and Global Net

Assuming the 90 days trading horizon INVH 2 15 AUG 31 is expected to under-perform the Global Net. But the bond apears to be less risky and, when comparing its historical volatility, INVH 2 15 AUG 31 is 1.09 times less risky than Global Net. The bond trades about -0.17 of its potential returns per unit of risk. The Global Net Lease is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,277  in Global Net Lease on October 10, 2024 and sell it today you would earn a total of  29.00  from holding Global Net Lease or generate 1.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	75.41%
Values	Daily Returns

INVH 2 15 AUG 31  vs.  Global Net Lease

INVH 2 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INVH 2 15 AUG 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for INVH 2 15 AUG 31 investors.

Global Net Lease

Risk-Adjusted Performance

1 of 100

Weak

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

Pair Trading with 46188BAA0 and Global Net

The main advantage of trading using opposite 46188BAA0 and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 46188BAA0 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 INVH 2 15 AUG 31 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.