Correlation Between VICI Properties and Ladenburg Thalmann

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

By analyzing existing cross correlation between VICI Properties and Ladenburg Thalmann Financial, you can compare the effects of market volatilities on VICI Properties and Ladenburg Thalmann 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 VICI Properties with a short position of Ladenburg Thalmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and Ladenburg Thalmann.

Diversification Opportunities for VICI Properties and Ladenburg Thalmann

-0.65

Correlation Coefficient

VICI Properties  Ladenburg Thalmann

Excellent diversification

The 3 months correlation between VICI and Ladenburg is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and Ladenburg Thalmann Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Thalmann and VICI Properties 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 VICI Properties are associated (or correlated) with Ladenburg Thalmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Thalmann has no effect on the direction of VICI Properties i.e., VICI Properties and Ladenburg Thalmann go up and down completely randomly.

Pair Corralation between VICI Properties and Ladenburg Thalmann

If you would invest  2,678  in VICI Properties on October 11, 2024 and sell it today you would earn a total of  205.00  from holding VICI Properties or generate 7.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.35%
Values	Daily Returns

VICI Properties  vs.  Ladenburg Thalmann Financial

VICI Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VICI Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Ladenburg Thalmann

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ladenburg Thalmann Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Ladenburg Thalmann is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with VICI Properties and Ladenburg Thalmann

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

The idea behind VICI Properties and Ladenburg Thalmann Financial 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.