Correlation Between Gaming Leisure and Crown Castle
Can any of the company-specific risk be diversified away by investing in both Gaming Leisure and Crown Castle 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 Gaming Leisure and Crown Castle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Leisure Properties and Crown Castle, you can compare the effects of market volatilities on Gaming Leisure and Crown Castle 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 Gaming Leisure with a short position of Crown Castle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Leisure and Crown Castle.
Diversification Opportunities for Gaming Leisure and Crown Castle
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gaming and Crown is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Leisure Properties and Crown Castle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Castle and Gaming Leisure 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 Gaming Leisure Properties are associated (or correlated) with Crown Castle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Castle has no effect on the direction of Gaming Leisure i.e., Gaming Leisure and Crown Castle go up and down completely randomly.
Pair Corralation between Gaming Leisure and Crown Castle
Given the investment horizon of 90 days Gaming Leisure Properties is expected to generate 0.83 times more return on investment than Crown Castle. However, Gaming Leisure Properties is 1.21 times less risky than Crown Castle. It trades about -0.06 of its potential returns per unit of risk. Crown Castle is currently generating about -0.13 per unit of risk. If you would invest 4,671 in Gaming Leisure Properties on August 20, 2025 and sell it today you would lose (217.00) from holding Gaming Leisure Properties or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Leisure Properties vs. Crown Castle
Performance |
| Timeline |
| Gaming Leisure Properties |
| Crown Castle |
Gaming Leisure and Crown Castle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Leisure and Crown Castle
The main advantage of trading using opposite Gaming Leisure and Crown Castle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Leisure position performs unexpectedly, Crown Castle 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 Crown Castle will offset losses from the drop in Crown Castle's long position.| Gaming Leisure vs. Lamar Advertising | Gaming Leisure vs. Annaly Capital Management, | Gaming Leisure vs. Rithm Capital Corp | Gaming Leisure vs. American Homes 4 |
| Crown Castle vs. Kimco Realty | Crown Castle vs. Iron Mountain Incorporated | Crown Castle vs. Public Storage | Crown Castle vs. CBRE Group Class |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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