Correlation Between American Healthcare and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both American Healthcare and Wheeler 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 American Healthcare and Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Healthcare REIT, and Wheeler Real Estate, you can compare the effects of market volatilities on American Healthcare and Wheeler 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 American Healthcare with a short position of Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Healthcare and Wheeler Real.
Diversification Opportunities for American Healthcare and Wheeler Real
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Wheeler is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding American Healthcare REIT, and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate and American Healthcare 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 American Healthcare REIT, are associated (or correlated) with Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of American Healthcare i.e., American Healthcare and Wheeler Real go up and down completely randomly.
Pair Corralation between American Healthcare and Wheeler Real
Considering the 90-day investment horizon American Healthcare REIT, is expected to generate 0.08 times more return on investment than Wheeler Real. However, American Healthcare REIT, is 11.93 times less risky than Wheeler Real. It trades about 0.2 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.04 per unit of risk. If you would invest 1,254 in American Healthcare REIT, on November 2, 2024 and sell it today you would earn a total of 1,565 from holding American Healthcare REIT, or generate 124.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
American Healthcare REIT, vs. Wheeler Real Estate
Performance |
| Timeline |
| American Healthcare REIT, |
| Wheeler Real Estate |
American Healthcare and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Healthcare and Wheeler Real
The main advantage of trading using opposite American Healthcare and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Healthcare position performs unexpectedly, Wheeler 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 Wheeler Real will offset losses from the drop in Wheeler Real's long position.| American Healthcare vs. Thai Beverage PCL | American Healthcare vs. Codexis | American Healthcare vs. Fernhill Beverage | American Healthcare vs. Chemours Co |
| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Macerich Company | Wheeler Real vs. Simon Property Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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