Correlation Between DigitalBridge and Global Net
Can any of the company-specific risk be diversified away by investing in both DigitalBridge 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 DigitalBridge and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigitalBridge Group and Global Net Lease, you can compare the effects of market volatilities on DigitalBridge 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 DigitalBridge with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigitalBridge and Global Net.
Diversification Opportunities for DigitalBridge and Global Net
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DigitalBridge and Global is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding DigitalBridge Group 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 DigitalBridge 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 DigitalBridge Group 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 DigitalBridge i.e., DigitalBridge and Global Net go up and down completely randomly.
Pair Corralation between DigitalBridge and Global Net
Assuming the 90 days trading horizon DigitalBridge is expected to generate 1.17 times less return on investment than Global Net. In addition to that, DigitalBridge is 1.16 times more volatile than Global Net Lease. It trades about 0.13 of its total potential returns per unit of risk. Global Net Lease is currently generating about 0.17 per unit of volatility. If you would invest 2,176 in Global Net Lease on May 29, 2025 and sell it today you would earn a total of 156.00 from holding Global Net Lease or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DigitalBridge Group vs. Global Net Lease
Performance |
| Timeline |
| DigitalBridge Group |
| Global Net Lease |
DigitalBridge and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigitalBridge and Global Net
The main advantage of trading using opposite DigitalBridge and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigitalBridge 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.| DigitalBridge vs. DigitalBridge Group | DigitalBridge vs. Global Net Lease | DigitalBridge vs. Chimera Investment | DigitalBridge vs. Cherry Hill Mortgage |
| Global Net vs. Global Net Lease | Global Net vs. Modiv Inc | Global Net vs. Armada Hoffler Properties | Global Net vs. Global Medical REIT |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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