Correlation Between Healthpeak Properties and American Healthcare
Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties 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 Healthpeak Properties and American Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and American Healthcare REIT,, you can compare the effects of market volatilities on Healthpeak Properties 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 Healthpeak Properties with a short position of American Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and American Healthcare.
Diversification Opportunities for Healthpeak Properties and American Healthcare
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Healthpeak and American is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties 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 Healthpeak Properties 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 Healthpeak Properties 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 Healthpeak Properties i.e., Healthpeak Properties and American Healthcare go up and down completely randomly.
Pair Corralation between Healthpeak Properties and American Healthcare
Considering the 90-day investment horizon Healthpeak Properties is expected to generate 7.53 times less return on investment than American Healthcare. But when comparing it to its historical volatility, Healthpeak Properties is 1.01 times less risky than American Healthcare. It trades about 0.03 of its potential returns per unit of risk. American Healthcare REIT, is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,265 in American Healthcare REIT, on August 28, 2024 and sell it today you would earn a total of 1,631 from holding American Healthcare REIT, or generate 128.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 57.63% |
| Values | Daily Returns |
Healthpeak Properties vs. American Healthcare REIT,
Performance |
| Timeline |
| Healthpeak Properties |
| American Healthcare REIT, |
Healthpeak Properties and American Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthpeak Properties and American Healthcare
The main advantage of trading using opposite Healthpeak Properties and American Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties 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.| Healthpeak Properties vs. Healthcare Realty Trust | Healthpeak Properties vs. Sabra Healthcare REIT | Healthpeak Properties vs. Community Healthcare Trust | Healthpeak Properties vs. Universal Health Realty |
| American Healthcare vs. Skechers USA | American Healthcare vs. NI Holdings | American Healthcare vs. Siriuspoint | American Healthcare vs. Old Republic International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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