Correlation Between Medical Properties and Hashicorp
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Hashicorp 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 Medical Properties and Hashicorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and Hashicorp, you can compare the effects of market volatilities on Medical Properties and Hashicorp 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 Medical Properties with a short position of Hashicorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Hashicorp.
Diversification Opportunities for Medical Properties and Hashicorp
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Medical and Hashicorp is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and Hashicorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hashicorp and Medical 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 Medical Properties Trust are associated (or correlated) with Hashicorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hashicorp has no effect on the direction of Medical Properties i.e., Medical Properties and Hashicorp go up and down completely randomly.
Pair Corralation between Medical Properties and Hashicorp
Considering the 90-day investment horizon Medical Properties Trust is expected to under-perform the Hashicorp. But the stock apears to be less risky and, when comparing its historical volatility, Medical Properties Trust is 1.25 times less risky than Hashicorp. The stock trades about -0.04 of its potential returns per unit of risk. The Hashicorp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,913 in Hashicorp on January 17, 2024 and sell it today you would lose (2,570) from holding Hashicorp or give up 52.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. Hashicorp
Performance |
| Timeline |
| Medical Properties Trust |
| Hashicorp |
Medical Properties and Hashicorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Hashicorp
The main advantage of trading using opposite Medical Properties and Hashicorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Hashicorp 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 Hashicorp will offset losses from the drop in Hashicorp's long position.| Medical Properties vs. Sabra Healthcare REIT | Medical Properties vs. LTC Properties | Medical Properties vs. Healthpeak Properties | Medical Properties vs. National Health Investors |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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