Correlation Between LTC Properties and EastGroup Properties
Can any of the company-specific risk be diversified away by investing in both LTC Properties and EastGroup 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 LTC Properties and EastGroup Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LTC Properties and EastGroup Properties, you can compare the effects of market volatilities on LTC Properties and EastGroup 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 LTC Properties with a short position of EastGroup Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of LTC Properties and EastGroup Properties.
Diversification Opportunities for LTC Properties and EastGroup Properties
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LTC and EastGroup is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding LTC Properties and EastGroup Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EastGroup Properties and LTC 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 LTC Properties are associated (or correlated) with EastGroup Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EastGroup Properties has no effect on the direction of LTC Properties i.e., LTC Properties and EastGroup Properties go up and down completely randomly.
Pair Corralation between LTC Properties and EastGroup Properties
Considering the 90-day investment horizon LTC Properties is expected to under-perform the EastGroup Properties. In addition to that, LTC Properties is 1.11 times more volatile than EastGroup Properties. It trades about 0.0 of its total potential returns per unit of risk. EastGroup Properties is currently generating about 0.0 per unit of volatility. If you would invest 17,409 in EastGroup Properties on August 31, 2024 and sell it today you would lose (25.00) from holding EastGroup Properties or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LTC Properties vs. EastGroup Properties
Performance |
| Timeline |
| LTC Properties |
| EastGroup Properties |
LTC Properties and EastGroup Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LTC Properties and EastGroup Properties
The main advantage of trading using opposite LTC Properties and EastGroup Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LTC Properties position performs unexpectedly, EastGroup 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 EastGroup Properties will offset losses from the drop in EastGroup Properties' long position.| LTC Properties vs. Omega Healthcare Investors | LTC Properties vs. Ventas Inc | LTC Properties vs. Community Healthcare Trust |
| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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