Correlation Between Healthpeak Properties and National Health
Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and National Health 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 National Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and National Health Investors, you can compare the effects of market volatilities on Healthpeak Properties and National Health 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 National Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and National Health.
Diversification Opportunities for Healthpeak Properties and National Health
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Healthpeak and National is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and National Health Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Health Investors 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 National Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Health Investors has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and National Health go up and down completely randomly.
Pair Corralation between Healthpeak Properties and National Health
Considering the 90-day investment horizon Healthpeak Properties is expected to generate 62.56 times less return on investment than National Health. In addition to that, Healthpeak Properties is 1.16 times more volatile than National Health Investors. It trades about 0.0 of its total potential returns per unit of risk. National Health Investors is currently generating about 0.07 per unit of volatility. If you would invest 4,977 in National Health Investors on August 27, 2024 and sell it today you would earn a total of 2,794 from holding National Health Investors or generate 56.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthpeak Properties vs. National Health Investors
Performance |
| Timeline |
| Healthpeak Properties |
| National Health Investors |
Healthpeak Properties and National Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthpeak Properties and National Health
The main advantage of trading using opposite Healthpeak Properties and National Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, National Health 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 National Health will offset losses from the drop in National Health'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 |
| National Health vs. Global Medical REIT | National Health vs. Healthpeak Properties | National Health vs. Ventas Inc | National Health vs. Omega Healthcare Investors |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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