Correlation Between CITY OFFICE and HEALTHSTREAM (HL5SG)
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and HEALTHSTREAM (HL5SG) 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 CITY OFFICE and HEALTHSTREAM (HL5SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and HEALTHSTREAM, you can compare the effects of market volatilities on CITY OFFICE and HEALTHSTREAM (HL5SG) 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 CITY OFFICE with a short position of HEALTHSTREAM (HL5SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and HEALTHSTREAM (HL5SG).
Diversification Opportunities for CITY OFFICE and HEALTHSTREAM (HL5SG)
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITY and HEALTHSTREAM is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and HEALTHSTREAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHSTREAM (HL5SG) and CITY OFFICE 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 CITY OFFICE REIT are associated (or correlated) with HEALTHSTREAM (HL5SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHSTREAM (HL5SG) has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and HEALTHSTREAM (HL5SG) go up and down completely randomly.
Pair Corralation between CITY OFFICE and HEALTHSTREAM (HL5SG)
Assuming the 90 days horizon CITY OFFICE REIT is expected to under-perform the HEALTHSTREAM (HL5SG). In addition to that, CITY OFFICE is 2.52 times more volatile than HEALTHSTREAM. It trades about -0.09 of its total potential returns per unit of risk. HEALTHSTREAM is currently generating about 0.08 per unit of volatility. If you would invest 3,080 in HEALTHSTREAM on November 3, 2024 and sell it today you would earn a total of 60.00 from holding HEALTHSTREAM or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CITY OFFICE REIT vs. HEALTHSTREAM
Performance |
| Timeline |
| CITY OFFICE REIT |
| HEALTHSTREAM (HL5SG) |
CITY OFFICE and HEALTHSTREAM (HL5SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and HEALTHSTREAM (HL5SG)
The main advantage of trading using opposite CITY OFFICE and HEALTHSTREAM (HL5SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG) will offset losses from the drop in HEALTHSTREAM (HL5SG)'s long position.| CITY OFFICE vs. Boston Properties | CITY OFFICE vs. Great Portland Estates | CITY OFFICE vs. Easterly Government Properties | CITY OFFICE vs. Office Properties Income |
| HEALTHSTREAM (HL5SG) vs. SIVERS SEMICONDUCTORS AB | HEALTHSTREAM (HL5SG) vs. NorAm Drilling AS | HEALTHSTREAM (HL5SG) vs. Volkswagen AG | HEALTHSTREAM (HL5SG) vs. Darden Restaurants |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |