Correlation Between Brunswick and Sabra Healthcare
Can any of the company-specific risk be diversified away by investing in both Brunswick and Sabra 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 Brunswick and Sabra Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and Sabra Healthcare REIT, you can compare the effects of market volatilities on Brunswick and Sabra 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 Brunswick with a short position of Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and Sabra Healthcare.
Diversification Opportunities for Brunswick and Sabra Healthcare
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brunswick and Sabra is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and Sabra Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Healthcare REIT and Brunswick 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 Brunswick are associated (or correlated) with Sabra Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Healthcare REIT has no effect on the direction of Brunswick i.e., Brunswick and Sabra Healthcare go up and down completely randomly.
Pair Corralation between Brunswick and Sabra Healthcare
Allowing for the 90-day total investment horizon Brunswick is expected to under-perform the Sabra Healthcare. In addition to that, Brunswick is 1.86 times more volatile than Sabra Healthcare REIT. It trades about -0.32 of its total potential returns per unit of risk. Sabra Healthcare REIT is currently generating about 0.03 per unit of volatility. If you would invest 1,633 in Sabra Healthcare REIT on January 9, 2025 and sell it today you would earn a total of 22.50 from holding Sabra Healthcare REIT or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick vs. Sabra Healthcare REIT
Performance |
| Timeline |
| Brunswick |
| Sabra Healthcare REIT |
Brunswick and Sabra Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and Sabra Healthcare
The main advantage of trading using opposite Brunswick and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick position performs unexpectedly, Sabra 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 Sabra Healthcare will offset losses from the drop in Sabra Healthcare's long position.| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
| Sabra Healthcare vs. Healthcare Realty Trust | Sabra Healthcare vs. Healthpeak Properties | Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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 | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |