Correlation Between Healthcare Realty and PS Business
Can any of the company-specific risk be diversified away by investing in both Healthcare Realty and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on Healthcare Realty and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Realty and PS Business.
Diversification Opportunities for Healthcare Realty and PS Business
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Healthcare and PSBXP is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and PS Business go up and down completely randomly.
Pair Corralation between Healthcare Realty and PS Business
If you would invest 1,761 in Healthcare Realty Trust on August 29, 2024 and sell it today you would earn a total of 94.00 from holding Healthcare Realty Trust or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Healthcare Realty Trust vs. PS Business Parks
Performance |
| Timeline |
| Healthcare Realty Trust |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Healthcare Realty and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Realty and PS Business
The main advantage of trading using opposite Healthcare Realty and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Realty position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' 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 |
| PS Business vs. Montauk Renewables | PS Business vs. Mesa Air Group | PS Business vs. JetBlue Airways Corp | PS Business vs. SkyWest |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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