Correlation Between Healthpeak Properties and First Real

Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties 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 Healthpeak Properties and First Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Healthpeak Properties and First Real Estate, you can compare the effects of market volatilities on Healthpeak Properties 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 Healthpeak Properties with a short position of First Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and First Real.

Diversification Opportunities for Healthpeak Properties and First Real

0.71

Correlation Coefficient

Healthpeak Properties  First Real

Poor diversification

The 3 months correlation between Healthpeak and First is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties 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 Healthpeak 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 Healthpeak Properties 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 Healthpeak Properties i.e., Healthpeak Properties and First Real go up and down completely randomly.

Pair Corralation between Healthpeak Properties and First Real

If you would invest  1,838  in Healthpeak Properties on February 3, 2024 and sell it today you would earn a total of  79.00  from holding Healthpeak Properties or generate 4.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Healthpeak Properties  vs.  First Real Estate

Healthpeak Properties

Risk-Adjusted Performance

7 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Healthpeak Properties are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Healthpeak Properties may actually be approaching a critical reversion point that can send shares even higher in June 2024.

First Real Estate

Risk-Adjusted Performance

14 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in First Real Estate are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, First Real may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Healthpeak Properties and First Real

The main advantage of trading using opposite Healthpeak Properties and First Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties 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.

The idea behind Healthpeak Properties and First Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.