Correlation Between Healthpeak Properties and Healthcare Realty
Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and Healthcare Realty 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 Healthcare Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and Healthcare Realty Trust, you can compare the effects of market volatilities on Healthpeak Properties and Healthcare Realty 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 Healthcare Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and Healthcare Realty.
Diversification Opportunities for Healthpeak Properties and Healthcare Realty
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthpeak and Healthcare is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and Healthcare Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Realty Trust 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 Healthcare Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Realty Trust has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and Healthcare Realty go up and down completely randomly.
Pair Corralation between Healthpeak Properties and Healthcare Realty
Considering the 90-day investment horizon Healthpeak Properties is expected to generate 1.5 times less return on investment than Healthcare Realty. But when comparing it to its historical volatility, Healthpeak Properties is 1.02 times less risky than Healthcare Realty. It trades about 0.26 of its potential returns per unit of risk. Healthcare Realty Trust is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,383 in Healthcare Realty Trust on February 12, 2024 and sell it today you would earn a total of 154.00 from holding Healthcare Realty Trust or generate 11.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Healthpeak Properties vs. Healthcare Realty Trust
Performance |
Timeline |
Healthpeak Properties |
Healthcare Realty Trust |
Healthpeak Properties and Healthcare Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Healthpeak Properties and Healthcare Realty
The main advantage of trading using opposite Healthpeak Properties and Healthcare Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, Healthcare Realty 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 Healthcare Realty will offset losses from the drop in Healthcare Realty's long position.Healthpeak Properties vs. Healthcare Realty Trust | Healthpeak Properties vs. Sabra Healthcare REIT | Healthpeak Properties vs. Community Healthcare Trust | Healthpeak Properties vs. Universal Health Realty |
Healthcare Realty vs. Healthpeak Properties | Healthcare Realty vs. Sabra Healthcare REIT | Healthcare Realty vs. Community Healthcare Trust | Healthcare Realty vs. Universal Health Realty |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |