Correlation Between EPR Properties and Hannon Armstrong
Can any of the company-specific risk be diversified away by investing in both EPR Properties and Hannon Armstrong 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 EPR Properties and Hannon Armstrong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPR Properties and Hannon Armstrong Sustainable, you can compare the effects of market volatilities on EPR Properties and Hannon Armstrong 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 EPR Properties with a short position of Hannon Armstrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPR Properties and Hannon Armstrong.
Diversification Opportunities for EPR Properties and Hannon Armstrong
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EPR and Hannon is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding EPR Properties and Hannon Armstrong Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannon Armstrong Sus and EPR 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 EPR Properties are associated (or correlated) with Hannon Armstrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannon Armstrong Sus has no effect on the direction of EPR Properties i.e., EPR Properties and Hannon Armstrong go up and down completely randomly.
Pair Corralation between EPR Properties and Hannon Armstrong
Considering the 90-day investment horizon EPR Properties is expected to generate 1.07 times less return on investment than Hannon Armstrong. But when comparing it to its historical volatility, EPR Properties is 1.34 times less risky than Hannon Armstrong. It trades about 0.19 of its potential returns per unit of risk. Hannon Armstrong Sustainable is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,715 in Hannon Armstrong Sustainable on November 2, 2024 and sell it today you would earn a total of 150.00 from holding Hannon Armstrong Sustainable or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EPR Properties vs. Hannon Armstrong Sustainable
Performance |
| Timeline |
| EPR Properties |
| Hannon Armstrong Sus |
EPR Properties and Hannon Armstrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPR Properties and Hannon Armstrong
The main advantage of trading using opposite EPR Properties and Hannon Armstrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPR Properties position performs unexpectedly, Hannon Armstrong 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 Hannon Armstrong will offset losses from the drop in Hannon Armstrong's long position.| EPR Properties vs. Equinix | EPR Properties vs. Crown Castle | EPR Properties vs. American Tower Corp | EPR Properties vs. Iron Mountain Incorporated |
| Hannon Armstrong vs. Equinix | Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. American Tower Corp | Hannon Armstrong vs. Iron Mountain Incorporated |
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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