Correlation Between British Land and National Retail
Can any of the company-specific risk be diversified away by investing in both British Land and National Retail 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 British Land and National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British Land and National Retail Properties, you can compare the effects of market volatilities on British Land and National Retail 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 British Land with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Land and National Retail.
Diversification Opportunities for British Land and National Retail
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between British and National is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding British Land and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and British Land 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 British Land are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of British Land i.e., British Land and National Retail go up and down completely randomly.
Pair Corralation between British Land and National Retail
Assuming the 90 days horizon British Land is expected to generate 0.96 times more return on investment than National Retail. However, British Land is 1.04 times less risky than National Retail. It trades about -0.05 of its potential returns per unit of risk. National Retail Properties is currently generating about -0.07 per unit of risk. If you would invest 494.00 in British Land on January 24, 2024 and sell it today you would lose (8.00) from holding British Land or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
British Land vs. National Retail Properties
Performance |
| Timeline |
| British Land |
| National Retail Prop |
British Land and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Land and National Retail
The main advantage of trading using opposite British Land and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Land position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.| British Land vs. Global Net Lease | British Land vs. Brightspire Capital | British Land vs. NexPoint Strategic Opportunities | British Land vs. Aquagold International |
| National Retail vs. Acadia Realty Trust | National Retail vs. Federal Realty Investment | National Retail vs. Realty Income Corp | National Retail vs. Whitestone 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |