Correlation Between Inventrust Properties and Medical Properties
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties and Medical Properties 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 Inventrust Properties and Medical Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventrust Properties Corp and Medical Properties Trust, you can compare the effects of market volatilities on Inventrust Properties and Medical Properties 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 Inventrust Properties with a short position of Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Medical Properties.
Diversification Opportunities for Inventrust Properties and Medical Properties
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inventrust and Medical is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust and Inventrust Properties 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 Inventrust Properties Corp are associated (or correlated) with Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of Inventrust Properties i.e., Inventrust Properties and Medical Properties go up and down completely randomly.
Pair Corralation between Inventrust Properties and Medical Properties
Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 0.32 times more return on investment than Medical Properties. However, Inventrust Properties Corp is 3.11 times less risky than Medical Properties. It trades about 0.26 of its potential returns per unit of risk. Medical Properties Trust is currently generating about -0.08 per unit of risk. If you would invest 2,943 in Inventrust Properties Corp on August 30, 2024 and sell it today you would earn a total of 187.00 from holding Inventrust Properties Corp or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventrust Properties Corp vs. Medical Properties Trust
Performance |
| Timeline |
| Inventrust Properties |
| Medical Properties Trust |
Inventrust Properties and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventrust Properties and Medical Properties
The main advantage of trading using opposite Inventrust Properties and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties position performs unexpectedly, Medical Properties 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 Medical Properties will offset losses from the drop in Medical Properties' long position.| Inventrust Properties vs. Saul Centers | Inventrust Properties vs. Site Centers Corp | Inventrust Properties vs. Kite Realty Group | Inventrust Properties vs. Acadia Realty Trust |
| Medical Properties vs. Sabra Healthcare REIT | Medical Properties vs. LTC Properties | Medical Properties vs. Healthpeak Properties | Medical Properties vs. National Health Investors |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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