Correlation Between VICI Properties and COPT Defense
Can any of the company-specific risk be diversified away by investing in both VICI Properties and COPT Defense 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 COPT Defense into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and COPT Defense Properties, you can compare the effects of market volatilities on VICI Properties and COPT Defense 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 COPT Defense. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and COPT Defense.
Diversification Opportunities for VICI Properties and COPT Defense
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VICI and COPT is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and COPT Defense Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPT Defense Properties 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 COPT Defense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPT Defense Properties has no effect on the direction of VICI Properties i.e., VICI Properties and COPT Defense go up and down completely randomly.
Pair Corralation between VICI Properties and COPT Defense
Given the investment horizon of 90 days VICI Properties is expected to generate 1.02 times more return on investment than COPT Defense. However, VICI Properties is 1.02 times more volatile than COPT Defense Properties. It trades about 0.11 of its potential returns per unit of risk. COPT Defense Properties is currently generating about 0.09 per unit of risk. If you would invest 3,132 in VICI Properties on May 27, 2025 and sell it today you would earn a total of 213.50 from holding VICI Properties or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. COPT Defense Properties
Performance |
| Timeline |
| VICI Properties |
| COPT Defense Properties |
VICI Properties and COPT Defense Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and COPT Defense
The main advantage of trading using opposite VICI Properties and COPT Defense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties position performs unexpectedly, COPT Defense 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 COPT Defense will offset losses from the drop in COPT Defense's long position.| VICI Properties vs. W P Carey | VICI Properties vs. Essential Properties Realty | VICI Properties vs. Gladstone Commercial | VICI Properties vs. Global Net Lease, |
| COPT Defense vs. GATX Corporation | COPT Defense vs. Tenax Therapeutics | COPT Defense vs. Aurinia Pharmaceuticals | COPT Defense vs. Fortress Transp Infra |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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