Correlation Between US Global and Sabra Healthcare
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and Sabra Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Sabra Healthcare REIT, you can compare the effects of market volatilities on US Global 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 US Global with a short position of Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Sabra Healthcare.
Diversification Opportunities for US Global and Sabra Healthcare
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GROW and Sabra is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors 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 US Global 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 US Global Investors 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 US Global i.e., US Global and Sabra Healthcare go up and down completely randomly.
Pair Corralation between US Global and Sabra Healthcare
Given the investment horizon of 90 days US Global Investors is expected to under-perform the Sabra Healthcare. In addition to that, US Global is 1.09 times more volatile than Sabra Healthcare REIT. It trades about 0.0 of its total potential returns per unit of risk. Sabra Healthcare REIT is currently generating about 0.08 per unit of volatility. If you would invest 1,058 in Sabra Healthcare REIT on September 2, 2024 and sell it today you would earn a total of 815.00 from holding Sabra Healthcare REIT or generate 77.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Sabra Healthcare REIT
Performance |
| Timeline |
| US Global Investors |
| Sabra Healthcare REIT |
US Global and Sabra Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Sabra Healthcare
The main advantage of trading using opposite US Global and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| 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 Positions Ratings module to 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.
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