Correlation Between LTC Properties and PEAK Old
Can any of the company-specific risk be diversified away by investing in both LTC Properties and PEAK Old 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 PEAK Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LTC Properties and PEAK Old, you can compare the effects of market volatilities on LTC Properties and PEAK Old 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 PEAK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of LTC Properties and PEAK Old.
Diversification Opportunities for LTC Properties and PEAK Old
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LTC and PEAK is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding LTC Properties and PEAK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEAK Old 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 PEAK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEAK Old has no effect on the direction of LTC Properties i.e., LTC Properties and PEAK Old go up and down completely randomly.
Pair Corralation between LTC Properties and PEAK Old
If you would invest 3,576 in LTC Properties on August 24, 2024 and sell it today you would earn a total of 294.00 from holding LTC Properties or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
LTC Properties vs. PEAK Old
Performance |
| Timeline |
| LTC Properties |
| PEAK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LTC Properties and PEAK Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LTC Properties and PEAK Old
The main advantage of trading using opposite LTC Properties and PEAK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LTC Properties position performs unexpectedly, PEAK Old 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 PEAK Old will offset losses from the drop in PEAK Old's long position.| LTC Properties vs. Medical Properties Trust | LTC Properties vs. Sabra Healthcare REIT | LTC Properties vs. Healthpeak Properties | LTC Properties vs. National Health Investors |
| PEAK Old vs. Welltower | PEAK Old vs. Mid America Apartment Communities | PEAK Old vs. Regency Centers | PEAK Old vs. UDR Inc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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