Correlation Between LTC Properties and Strawberry Fields
Can any of the company-specific risk be diversified away by investing in both LTC Properties and Strawberry Fields 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 Strawberry Fields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LTC Properties and Strawberry Fields REIT, you can compare the effects of market volatilities on LTC Properties and Strawberry Fields 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 Strawberry Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of LTC Properties and Strawberry Fields.
Diversification Opportunities for LTC Properties and Strawberry Fields
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between LTC and Strawberry is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding LTC Properties and Strawberry Fields REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strawberry Fields REIT 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 Strawberry Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strawberry Fields REIT has no effect on the direction of LTC Properties i.e., LTC Properties and Strawberry Fields go up and down completely randomly.
Pair Corralation between LTC Properties and Strawberry Fields
Considering the 90-day investment horizon LTC Properties is expected to generate 4.09 times less return on investment than Strawberry Fields. But when comparing it to its historical volatility, LTC Properties is 2.45 times less risky than Strawberry Fields. It trades about 0.03 of its potential returns per unit of risk. Strawberry Fields REIT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Strawberry Fields REIT on September 2, 2024 and sell it today you would earn a total of 466.00 from holding Strawberry Fields REIT or generate 58.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LTC Properties vs. Strawberry Fields REIT
Performance |
| Timeline |
| LTC Properties |
| Strawberry Fields REIT |
LTC Properties and Strawberry Fields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LTC Properties and Strawberry Fields
The main advantage of trading using opposite LTC Properties and Strawberry Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LTC Properties position performs unexpectedly, Strawberry Fields 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 Strawberry Fields will offset losses from the drop in Strawberry Fields' 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 |
| Strawberry Fields vs. CareTrust REIT | Strawberry Fields vs. Global Medical REIT | Strawberry Fields vs. Universal Health Realty | Strawberry Fields vs. Healthpeak 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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