Correlation Between Healthcare Realty and Sabra Healthcare
Can any of the company-specific risk be diversified away by investing in both Healthcare Realty and Sabra 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 Healthcare Realty and Sabra Healthcare 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 Sabra Healthcare REIT, you can compare the effects of market volatilities on Healthcare Realty and Sabra 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 Healthcare Realty with a short position of Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Realty and Sabra Healthcare.
Diversification Opportunities for Healthcare Realty and Sabra Healthcare
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Healthcare and Sabra is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and Sabra Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Healthcare REIT 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 Sabra Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Healthcare REIT has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and Sabra Healthcare go up and down completely randomly.
Pair Corralation between Healthcare Realty and Sabra Healthcare
Allowing for the 90-day total investment horizon Healthcare Realty is expected to generate 7.9 times less return on investment than Sabra Healthcare. In addition to that, Healthcare Realty is 1.19 times more volatile than Sabra Healthcare REIT. It trades about 0.01 of its total potential returns per unit of risk. Sabra Healthcare REIT is currently generating about 0.12 per unit of volatility. If you would invest 1,015 in Sabra Healthcare REIT on August 27, 2024 and sell it today you would earn a total of 826.00 from holding Sabra Healthcare REIT or generate 81.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Realty Trust vs. Sabra Healthcare REIT
Performance |
| Timeline |
| Healthcare Realty Trust |
| Sabra Healthcare REIT |
Healthcare Realty and Sabra Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Realty and Sabra Healthcare
The main advantage of trading using opposite Healthcare Realty and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Realty position performs unexpectedly, Sabra 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 Sabra Healthcare will offset losses from the drop in Sabra Healthcare'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 |
| Sabra Healthcare vs. Healthcare Realty Trust | Sabra Healthcare vs. Healthpeak Properties | Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |