Correlation Between Vornado Realty and Global Medical
Can any of the company-specific risk be diversified away by investing in both Vornado Realty and Global Medical 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 Vornado Realty and Global Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vornado Realty Trust and Global Medical REIT, you can compare the effects of market volatilities on Vornado Realty and Global Medical 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 Vornado Realty with a short position of Global Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vornado Realty and Global Medical.
Diversification Opportunities for Vornado Realty and Global Medical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vornado and Global is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Vornado Realty Trust and Global Medical REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Medical REIT and Vornado Realty 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 Vornado Realty Trust are associated (or correlated) with Global Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Medical REIT has no effect on the direction of Vornado Realty i.e., Vornado Realty and Global Medical go up and down completely randomly.
Pair Corralation between Vornado Realty and Global Medical
Assuming the 90 days trading horizon Vornado Realty Trust is expected to generate 1.62 times more return on investment than Global Medical. However, Vornado Realty is 1.62 times more volatile than Global Medical REIT. It trades about 0.17 of its potential returns per unit of risk. Global Medical REIT is currently generating about 0.08 per unit of risk. If you would invest 1,405 in Vornado Realty Trust on June 10, 2025 and sell it today you would earn a total of 120.00 from holding Vornado Realty Trust or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vornado Realty Trust vs. Global Medical REIT
Performance |
| Timeline |
| Vornado Realty Trust |
| Global Medical REIT |
Vornado Realty and Global Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vornado Realty and Global Medical
The main advantage of trading using opposite Vornado Realty and Global Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vornado Realty position performs unexpectedly, Global Medical 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 Medical will offset losses from the drop in Global Medical's long position.| Vornado Realty vs. Vornado Realty Trust | Vornado Realty vs. Vornado Realty Trust | Vornado Realty vs. Vornado Realty Trust | Vornado Realty vs. Hudson Pacific Properties |
| Global Medical vs. Universal Health Realty | Global Medical vs. Global Medical REIT | Global Medical vs. Ventas Inc | Global Medical vs. Healthcare Realty Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |