Correlation Between Alexandria Real and American Healthcare
Can any of the company-specific risk be diversified away by investing in both Alexandria Real and American Healthcare 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 Alexandria Real and American Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexandria Real Estate and American Healthcare REIT,, you can compare the effects of market volatilities on Alexandria Real and American Healthcare 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 Alexandria Real with a short position of American Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexandria Real and American Healthcare.
Diversification Opportunities for Alexandria Real and American Healthcare
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alexandria and American is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Alexandria Real Estate and American Healthcare REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Healthcare REIT, and Alexandria Real 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 Alexandria Real Estate are associated (or correlated) with American Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Healthcare REIT, has no effect on the direction of Alexandria Real i.e., Alexandria Real and American Healthcare go up and down completely randomly.
Pair Corralation between Alexandria Real and American Healthcare
Considering the 90-day investment horizon Alexandria Real is expected to generate 46.14 times less return on investment than American Healthcare. In addition to that, Alexandria Real is 1.15 times more volatile than American Healthcare REIT,. It trades about 0.0 of its total potential returns per unit of risk. American Healthcare REIT, is currently generating about 0.25 per unit of volatility. If you would invest 1,265 in American Healthcare REIT, on August 30, 2024 and sell it today you would earn a total of 1,692 from holding American Healthcare REIT, or generate 133.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.03% |
| Values | Daily Returns |
Alexandria Real Estate vs. American Healthcare REIT,
Performance |
| Timeline |
| Alexandria Real Estate |
| American Healthcare REIT, |
Alexandria Real and American Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexandria Real and American Healthcare
The main advantage of trading using opposite Alexandria Real and American Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexandria Real position performs unexpectedly, American Healthcare 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 American Healthcare will offset losses from the drop in American Healthcare's long position.| Alexandria Real vs. Office Properties Income | Alexandria Real vs. SL Green Realty | Alexandria Real vs. Highwoods Properties | Alexandria Real vs. Equity Commonwealth |
| American Healthcare vs. Healthcare Realty Trust | American Healthcare vs. Sabra Healthcare REIT | American Healthcare vs. National Health Investors | American Healthcare vs. Global Medical REIT |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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