This module allows you to analyze existing cross correlation between United States Gasoline and Realty Income Corporation. You can compare the effects of market volatilities on United States and Realty Income 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 United States with a short position of Realty Income. See also your portfolio center
. Please also check ongoing floating volatility patterns of United States
and Realty Income
United States Gasoline vs Realty Income Corp.
Considering 30-days investment horizon, United States Gasoline is expected to under-perform the Realty Income. But the etf apears to be less risky and, when comparing its historical volatility, United States Gasoline is 1.19 times less risky than Realty Income. The etf trades about -0.25 of its potential returns per unit of risk. The Realty Income Corporation is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 5,386 in Realty Income Corporation on January 21, 2018 and sell it today you would lose (390.00) from holding Realty Income Corporation or give up 7.24% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding United States Gasoline and Realty Income Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Realty Income and United States 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 United States Gasoline are associated (or correlated) with Realty Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realty Income has no effect on the direction of United States i.e. United States and Realty Income go up and down completely randomly.
Over the last 30 days United States Gasoline has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Realty Income Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.