Healthcare Realty Trust Stock Volatility

HR Stock  USD 16.05  0.02  0.12%   
Healthcare Realty appears to be very steady, given 3 months investment horizon. Healthcare Realty Trust holds Efficiency (Sharpe) Ratio of 0.23, which attests that the entity had a 0.23% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Healthcare Realty Trust, which you can use to evaluate the volatility of the firm. Please utilize Healthcare Realty's market risk adjusted performance of 0.3845, and Risk Adjusted Performance of 0.1576 to validate if our risk estimates are consistent with your expectations. Key indicators related to Healthcare Realty's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Healthcare Realty Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Healthcare daily returns, and it is calculated using variance and standard deviation. We also use Healthcare's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Healthcare Realty volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Healthcare Realty's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Healthcare Realty's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Healthcare Realty can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Healthcare Realty at lower prices. For example, an investor can purchase Healthcare stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Healthcare Realty's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Healthcare Stock

  0.81UE Urban Edge Properties Sell-off TrendPairCorr
  0.79ELME Elme CommunitiesPairCorr

Moving against Healthcare Stock

  0.85WHLR Wheeler Real EstatePairCorr
  0.82PK Park Hotels ResortsPairCorr
  0.79WY Weyerhaeuser Financial Report 25th of July 2024 PairCorr
  0.68FISK Empire State Realty Downward RallyPairCorr
  0.56FR First Industrial RealtyPairCorr
  0.38ESBA Empire State RealtyPairCorr

Healthcare Realty Market Sensitivity And Downside Risk

Healthcare Realty's beta coefficient measures the volatility of Healthcare stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Healthcare stock's returns against your selected market. In other words, Healthcare Realty's beta of 0.89 provides an investor with an approximation of how much risk Healthcare Realty stock can potentially add to one of your existing portfolios. Healthcare Realty Trust has relatively low volatility with skewness of 0.3 and kurtosis of 0.74. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Healthcare Realty's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Healthcare Realty's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Healthcare Realty Trust Demand Trend
Check current 90 days Healthcare Realty correlation with market (Dow Jones Industrial)

Healthcare Beta

    
  0.89  
Healthcare standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.48  
It is essential to understand the difference between upside risk (as represented by Healthcare Realty's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Healthcare Realty's daily returns or price. Since the actual investment returns on holding a position in healthcare stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Healthcare Realty.

Using Healthcare Put Option to Manage Risk

Put options written on Healthcare Realty grant holders of the option the right to sell a specified amount of Healthcare Realty at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Healthcare Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Healthcare Realty's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Healthcare Realty will be realized, the loss incurred will be offset by the profits made with the option trade.

Healthcare Realty's PUT expiring on 2024-07-19

   Profit   
       Healthcare Realty Price At Expiration  

Current Healthcare Realty Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-07-19 PUT at $22.5-0.95450.030232024-07-196.4 - 6.66.8View
Put
2024-07-19 PUT at $17.5-0.81980.1776512024-07-190.65 - 1.61.42View
Put
2024-07-19 PUT at $15.0-0.22260.19991212024-07-190.1 - 0.30.14View
View All Healthcare Realty Options

Healthcare Realty Trust Stock Volatility Analysis

Volatility refers to the frequency at which Healthcare Realty stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Healthcare Realty's price changes. Investors will then calculate the volatility of Healthcare Realty's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Healthcare Realty's volatility:

Historical Volatility

This type of stock volatility measures Healthcare Realty's fluctuations based on previous trends. It's commonly used to predict Healthcare Realty's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Healthcare Realty's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Healthcare Realty's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Healthcare Realty Trust Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Healthcare Realty Projected Return Density Against Market

Allowing for the 90-day total investment horizon Healthcare Realty has a beta of 0.888 . This usually indicates Healthcare Realty Trust market returns are sensible to returns on the market. As the market goes up or down, Healthcare Realty is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Healthcare Realty or Diversified REITs sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Healthcare Realty's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Healthcare stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Healthcare Realty Trust has an alpha of 0.3381, implying that it can generate a 0.34 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Healthcare Realty's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how healthcare stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Healthcare Realty Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Healthcare Realty Stock Risk Measures

Allowing for the 90-day total investment horizon the coefficient of variation of Healthcare Realty is 442.39. The daily returns are distributed with a variance of 2.18 and standard deviation of 1.48. The mean deviation of Healthcare Realty Trust is currently at 1.08. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.66
α
Alpha over Dow Jones
0.34
β
Beta against Dow Jones0.89
σ
Overall volatility
1.48
Ir
Information ratio 0.23

Healthcare Realty Stock Return Volatility

Healthcare Realty historical daily return volatility represents how much of Healthcare Realty stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise accepts 1.4756% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.6579% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Healthcare Realty Volatility

Volatility is a rate at which the price of Healthcare Realty or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Healthcare Realty may increase or decrease. In other words, similar to Healthcare's beta indicator, it measures the risk of Healthcare Realty and helps estimate the fluctuations that may happen in a short period of time. So if prices of Healthcare Realty fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for Next Year
Market Cap6.5 B6.9 B
Healthcare Realty's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Healthcare Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Healthcare Realty's price varies over time.

3 ways to utilize Healthcare Realty's volatility to invest better

Higher Healthcare Realty's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Healthcare Realty Trust stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Healthcare Realty Trust stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Healthcare Realty Trust investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Healthcare Realty's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Healthcare Realty's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Healthcare Realty Investment Opportunity

Healthcare Realty Trust has a volatility of 1.48 and is 2.24 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Healthcare Realty Trust is lower than 13 percent of all global equities and portfolios over the last 90 days. You can use Healthcare Realty Trust to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Healthcare Realty to be traded at $15.89 in 90 days.

Weak diversification

The correlation between Healthcare Realty Trust and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and DJI in the same portfolio, assuming nothing else is changed.

Healthcare Realty Additional Risk Indicators

The analysis of Healthcare Realty's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Healthcare Realty's investment and either accepting that risk or mitigating it. Along with some common measures of Healthcare Realty stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Healthcare Realty Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Healthcare Realty as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Healthcare Realty's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Healthcare Realty's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Healthcare Realty Trust.

Additional Tools for Healthcare Stock Analysis

When running Healthcare Realty's price analysis, check to measure Healthcare Realty's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Healthcare Realty is operating at the current time. Most of Healthcare Realty's value examination focuses on studying past and present price action to predict the probability of Healthcare Realty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Healthcare Realty's price. Additionally, you may evaluate how the addition of Healthcare Realty to your portfolios can decrease your overall portfolio volatility.