Correlation Between Healthcare Realty and Xinyuan Real
Can any of the company-specific risk be diversified away by investing in both Healthcare Realty and Xinyuan 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 Xinyuan 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 Xinyuan Real Estate, you can compare the effects of market volatilities on Healthcare Realty and Xinyuan 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 Xinyuan Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Realty and Xinyuan Real.
Diversification Opportunities for Healthcare Realty and Xinyuan Real
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Healthcare and Xinyuan is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Realty Trust and Xinyuan Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyuan 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 Xinyuan Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyuan Real Estate has no effect on the direction of Healthcare Realty i.e., Healthcare Realty and Xinyuan Real go up and down completely randomly.
Pair Corralation between Healthcare Realty and Xinyuan Real
Allowing for the 90-day total investment horizon Healthcare Realty Trust is expected to generate 0.61 times more return on investment than Xinyuan Real. However, Healthcare Realty Trust is 1.65 times less risky than Xinyuan Real. It trades about -0.04 of its potential returns per unit of risk. Xinyuan Real Estate is currently generating about -0.29 per unit of risk. If you would invest 1,761 in Healthcare Realty Trust on August 27, 2024 and sell it today you would lose (31.00) from holding Healthcare Realty Trust or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Realty Trust vs. Xinyuan Real Estate
Performance |
| Timeline |
| Healthcare Realty Trust |
| Xinyuan Real Estate |
Healthcare Realty and Xinyuan Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Realty and Xinyuan Real
The main advantage of trading using opposite Healthcare Realty and Xinyuan Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Realty position performs unexpectedly, Xinyuan 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 Xinyuan Real will offset losses from the drop in Xinyuan Real'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 |
| Xinyuan Real vs. Investcorp Credit Management | Xinyuan Real vs. Medalist Diversified Reit | Xinyuan Real vs. Aquagold International | Xinyuan Real vs. Morningstar Unconstrained Allocation |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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