Correlation Between Kilroy Realty and Sabra Healthcare
Can any of the company-specific risk be diversified away by investing in both Kilroy 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 Kilroy 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 Kilroy Realty Corp and Sabra Healthcare REIT, you can compare the effects of market volatilities on Kilroy 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 Kilroy Realty with a short position of Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilroy Realty and Sabra Healthcare.
Diversification Opportunities for Kilroy Realty and Sabra Healthcare
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kilroy and Sabra is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kilroy Realty Corp 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 Kilroy 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 Kilroy Realty Corp 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 Kilroy Realty i.e., Kilroy Realty and Sabra Healthcare go up and down completely randomly.
Pair Corralation between Kilroy Realty and Sabra Healthcare
Considering the 90-day investment horizon Kilroy Realty Corp is expected to generate 1.84 times more return on investment than Sabra Healthcare. However, Kilroy Realty is 1.84 times more volatile than Sabra Healthcare REIT. It trades about 0.06 of its potential returns per unit of risk. Sabra Healthcare REIT is currently generating about -0.15 per unit of risk. If you would invest 3,965 in Kilroy Realty Corp on October 7, 2024 and sell it today you would earn a total of 98.00 from holding Kilroy Realty Corp or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kilroy Realty Corp vs. Sabra Healthcare REIT
Performance |
| Timeline |
| Kilroy Realty Corp |
| Sabra Healthcare REIT |
Kilroy Realty and Sabra Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilroy Realty and Sabra Healthcare
The main advantage of trading using opposite Kilroy Realty and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilroy 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.| Kilroy Realty vs. Hudson Pacific Properties | Kilroy Realty vs. Highwoods Properties | Kilroy Realty vs. Cousins Properties Incorporated | Kilroy Realty vs. Piedmont Office 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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