Correlation Between Healthcare Realty and Guggenheim Risk
Can any of the company-specific risk be diversified away by investing in both Healthcare Realty and Guggenheim Risk 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 Guggenheim Risk 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 Guggenheim Risk Managed, you can compare the effects of market volatilities on Healthcare Realty and Guggenheim Risk 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 Guggenheim Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Realty and Guggenheim Risk.
Diversification Opportunities for Healthcare Realty and Guggenheim Risk
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Healthcare and Guggenheim is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and Guggenheim Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Risk Managed 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 Guggenheim Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Risk Managed has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and Guggenheim Risk go up and down completely randomly.
Pair Corralation between Healthcare Realty and Guggenheim Risk
Allowing for the 90-day total investment horizon Healthcare Realty Trust is expected to generate 2.04 times more return on investment than Guggenheim Risk. However, Healthcare Realty is 2.04 times more volatile than Guggenheim Risk Managed. It trades about 0.07 of its potential returns per unit of risk. Guggenheim Risk Managed is currently generating about 0.09 per unit of risk. If you would invest 1,749 in Healthcare Realty Trust on August 30, 2024 and sell it today you would earn a total of 99.00 from holding Healthcare Realty Trust or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Realty Trust vs. Guggenheim Risk Managed
Performance |
| Timeline |
| Healthcare Realty Trust |
| Guggenheim Risk Managed |
Healthcare Realty and Guggenheim Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Realty and Guggenheim Risk
The main advantage of trading using opposite Healthcare Realty and Guggenheim Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Realty position performs unexpectedly, Guggenheim Risk 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 Guggenheim Risk will offset losses from the drop in Guggenheim Risk's long position.| Healthcare Realty vs. Sabra Healthcare REIT | Healthcare Realty vs. LTC Properties | Healthcare Realty vs. Healthpeak Properties | Healthcare Realty vs. National Health Investors |
| Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Lazard Global Listed | Guggenheim Risk vs. Baron Real Estate |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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