Correlation Between Medical Properties and Cable One
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Cable One 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 Medical Properties and Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust, and Cable One, you can compare the effects of market volatilities on Medical Properties and Cable One 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 Medical Properties with a short position of Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Cable One.
Diversification Opportunities for Medical Properties and Cable One
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Medical and Cable is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust, and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One and Medical 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 Medical Properties Trust, are associated (or correlated) with Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of Medical Properties i.e., Medical Properties and Cable One go up and down completely randomly.
Pair Corralation between Medical Properties and Cable One
Assuming the 90 days trading horizon Medical Properties Trust, is expected to generate 2.81 times more return on investment than Cable One. However, Medical Properties is 2.81 times more volatile than Cable One. It trades about 0.03 of its potential returns per unit of risk. Cable One is currently generating about -0.34 per unit of risk. If you would invest 1,187 in Medical Properties Trust, on October 16, 2024 and sell it today you would earn a total of 9.00 from holding Medical Properties Trust, or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Medical Properties Trust, vs. Cable One
Performance |
| Timeline |
| Medical Properties Trust, |
| Cable One |
Medical Properties and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Cable One
The main advantage of trading using opposite Medical Properties and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| Medical Properties vs. Broadridge Financial Solutions, | Medical Properties vs. TAL Education Group | Medical Properties vs. Credit Acceptance | Medical Properties vs. Eastman Chemical |
| Cable One vs. HDFC Bank Limited | Cable One vs. The Hartford Financial | Cable One vs. Clover Health Investments, | Cable One vs. G2D Investments |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |