Correlation Between Healthcare Realty and Aedifica
Can any of the company-specific risk be diversified away by investing in both Healthcare Realty and Aedifica 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 Healthcare Realty and Aedifica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthcare Realty Trust and Aedifica SA, you can compare the effects of market volatilities on Healthcare Realty and Aedifica 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 Healthcare Realty with a short position of Aedifica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Realty and Aedifica.
Diversification Opportunities for Healthcare Realty and Aedifica
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Healthcare and Aedifica is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and Aedifica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedifica SA and Healthcare Realty 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 Healthcare Realty Trust are associated (or correlated) with Aedifica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedifica SA has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and Aedifica go up and down completely randomly.
Pair Corralation between Healthcare Realty and Aedifica
If you would invest 1,695 in Healthcare Realty Trust on November 1, 2024 and sell it today you would lose (3.50) from holding Healthcare Realty Trust or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Realty Trust vs. Aedifica SA
Performance |
| Timeline |
| Healthcare Realty Trust |
| Aedifica SA |
Healthcare Realty and Aedifica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Realty and Aedifica
The main advantage of trading using opposite Healthcare Realty and Aedifica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Realty position performs unexpectedly, Aedifica 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 Aedifica will offset losses from the drop in Aedifica's long position.| Healthcare Realty vs. Healthpeak Properties | Healthcare Realty vs. Sabra Healthcare REIT | Healthcare Realty vs. Community Healthcare Trust | Healthcare Realty 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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |