Correlation Between Inventrust Properties and Welltower
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties and Welltower 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 Welltower 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 Welltower, you can compare the effects of market volatilities on Inventrust Properties and Welltower 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 Welltower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Welltower.
Diversification Opportunities for Inventrust Properties and Welltower
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inventrust and Welltower is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp and Welltower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welltower 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 Welltower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welltower has no effect on the direction of Inventrust Properties i.e., Inventrust Properties and Welltower go up and down completely randomly.
Pair Corralation between Inventrust Properties and Welltower
Considering the 90-day investment horizon Inventrust Properties Corp is expected to generate 0.82 times more return on investment than Welltower. However, Inventrust Properties Corp is 1.22 times less risky than Welltower. It trades about 0.21 of its potential returns per unit of risk. Welltower is currently generating about 0.16 per unit of risk. If you would invest 2,837 in Inventrust Properties Corp on August 30, 2024 and sell it today you would earn a total of 293.00 from holding Inventrust Properties Corp or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventrust Properties Corp vs. Welltower
Performance |
| Timeline |
| Inventrust Properties |
| Welltower |
Inventrust Properties and Welltower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventrust Properties and Welltower
The main advantage of trading using opposite Inventrust Properties and Welltower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties position performs unexpectedly, Welltower 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 Welltower will offset losses from the drop in Welltower's long position.| Inventrust Properties vs. Saul Centers | Inventrust Properties vs. Site Centers Corp | Inventrust Properties vs. Acadia Realty Trust | Inventrust Properties vs. Retail Opportunity Investments |
| Welltower vs. Boston Properties | Welltower vs. Douglas Emmett | Welltower vs. Kilroy Realty Corp | Welltower vs. Highwoods Properties |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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