Correlation Between Healthcare Realty and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Healthcare Realty and Dunham Real 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 Dunham Real 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 Dunham Real Estate, you can compare the effects of market volatilities on Healthcare Realty and Dunham Real 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 Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Realty and Dunham Real.
Diversification Opportunities for Healthcare Realty and Dunham Real
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Healthcare and Dunham is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and Dunham Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Real Estate 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 Dunham Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Real Estate has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and Dunham Real go up and down completely randomly.
Pair Corralation between Healthcare Realty and Dunham Real
Allowing for the 90-day total investment horizon Healthcare Realty Trust is expected to generate 1.52 times more return on investment than Dunham Real. However, Healthcare Realty is 1.52 times more volatile than Dunham Real Estate. It trades about 0.07 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.08 per unit of risk. If you would invest 1,468 in Healthcare Realty Trust on September 3, 2024 and sell it today you would earn a total of 386.00 from holding Healthcare Realty Trust or generate 26.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Realty Trust vs. Dunham Real Estate
Performance |
| Timeline |
| Healthcare Realty Trust |
| Dunham Real Estate |
Healthcare Realty and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Realty and Dunham Real
The main advantage of trading using opposite Healthcare Realty and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Realty position performs unexpectedly, Dunham Real 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 Dunham Real will offset losses from the drop in Dunham Real's long position.| Healthcare Realty vs. Community Healthcare Trust | Healthcare Realty vs. Global Medical REIT | Healthcare Realty vs. CareTrust REIT | Healthcare Realty vs. Welltower |
| Dunham Real vs. Sterling Capital Short | Dunham Real vs. Old Westbury Short Term | Dunham Real vs. Goldman Sachs Short | Dunham Real vs. Jhancock Short Duration |
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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