Correlation Between Global Medical and Healthpeak Properties
Can any of the company-specific risk be diversified away by investing in both Global Medical and Healthpeak Properties 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 Global Medical and Healthpeak Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Medical REIT and Healthpeak Properties, you can compare the effects of market volatilities on Global Medical and Healthpeak Properties 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 Global Medical with a short position of Healthpeak Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Medical and Healthpeak Properties.
Diversification Opportunities for Global Medical and Healthpeak Properties
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Healthpeak is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Global Medical REIT and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties and Global Medical 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 Global Medical REIT are associated (or correlated) with Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of Global Medical i.e., Global Medical and Healthpeak Properties go up and down completely randomly.
Pair Corralation between Global Medical and Healthpeak Properties
Given the investment horizon of 90 days Global Medical is expected to generate 1.18 times less return on investment than Healthpeak Properties. But when comparing it to its historical volatility, Global Medical REIT is 1.03 times less risky than Healthpeak Properties. It trades about 0.03 of its potential returns per unit of risk. Healthpeak Properties is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,875 in Healthpeak Properties on August 27, 2024 and sell it today you would earn a total of 287.00 from holding Healthpeak Properties or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Medical REIT vs. Healthpeak Properties
Performance |
| Timeline |
| Global Medical REIT |
| Healthpeak Properties |
Global Medical and Healthpeak Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Medical and Healthpeak Properties
The main advantage of trading using opposite Global Medical and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Medical position performs unexpectedly, Healthpeak Properties 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 Healthpeak Properties will offset losses from the drop in Healthpeak Properties' long position.| Global Medical vs. Healthpeak Properties | Global Medical vs. Ventas Inc | Global Medical vs. National Health Investors | Global Medical vs. Sabra Healthcare REIT |
| Healthpeak Properties vs. Healthcare Realty Trust | Healthpeak Properties vs. Sabra Healthcare REIT | Healthpeak Properties vs. Community Healthcare Trust | Healthpeak Properties 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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