Correlation Between Welltower and First Real
Can any of the company-specific risk be diversified away by investing in both Welltower and First Real 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 Welltower and First Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Welltower and First Real Estate, you can compare the effects of market volatilities on Welltower and First Real 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 Welltower with a short position of First Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Welltower and First Real.
Diversification Opportunities for Welltower and First Real
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Welltower and First is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Welltower and First Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Real Estate and Welltower 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 Welltower are associated (or correlated) with First Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Real Estate has no effect on the direction of Welltower i.e., Welltower and First Real go up and down completely randomly.
Pair Corralation between Welltower and First Real
If you would invest 19.00 in First Real Estate on January 20, 2024 and sell it today you would earn a total of 0.00 from holding First Real Estate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Welltower vs. First Real Estate
Performance |
| Timeline |
| Welltower |
| First Real Estate |
Welltower and First Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Welltower and First Real
The main advantage of trading using opposite Welltower and First Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Welltower position performs unexpectedly, First Real 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 First Real will offset losses from the drop in First Real's long position.| Welltower vs. Healthcare Realty Trust | Welltower vs. Sabra Healthcare REIT | Welltower vs. National Health Investors | Welltower vs. Global Medical REIT |
| First Real vs. Omega Healthcare Investors | First Real vs. LTC Properties | First Real vs. Healthpeak Properties | First Real vs. Global Medical 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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