Correlation Between Highwoods Properties and American Healthcare
Can any of the company-specific risk be diversified away by investing in both Highwoods 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 Highwoods 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 Highwoods Properties and American Healthcare REIT,, you can compare the effects of market volatilities on Highwoods 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 Highwoods Properties with a short position of American Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highwoods Properties and American Healthcare.
Diversification Opportunities for Highwoods Properties and American Healthcare
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highwoods and American is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Highwoods 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 Highwoods 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 Highwoods 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 Highwoods Properties i.e., Highwoods Properties and American Healthcare go up and down completely randomly.
Pair Corralation between Highwoods Properties and American Healthcare
Considering the 90-day investment horizon Highwoods Properties is expected to generate 2.69 times less return on investment than American Healthcare. In addition to that, Highwoods Properties is 1.26 times more volatile than American Healthcare REIT,. It trades about 0.08 of its total potential returns per unit of risk. American Healthcare REIT, is currently generating about 0.25 per unit of volatility. If you would invest 1,265 in American Healthcare REIT, on August 30, 2024 and sell it today you would earn a total of 1,692 from holding American Healthcare REIT, or generate 133.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.03% |
| Values | Daily Returns |
Highwoods Properties vs. American Healthcare REIT,
Performance |
| Timeline |
| Highwoods Properties |
| American Healthcare REIT, |
Highwoods Properties and American Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highwoods Properties and American Healthcare
The main advantage of trading using opposite Highwoods Properties and American Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highwoods 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.| Highwoods Properties vs. Piedmont Office Realty | Highwoods Properties vs. Douglas Emmett | Highwoods Properties vs. Kilroy Realty Corp | Highwoods Properties vs. Hudson Pacific Properties |
| American Healthcare vs. Healthcare Realty Trust | American Healthcare vs. Sabra Healthcare REIT | American Healthcare vs. National Health Investors | American Healthcare vs. Global Medical REIT |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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