Correlation Between Medical Properties and Healthpeak Properties
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Healthpeak 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 Medical Properties and Healthpeak Properties 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 Healthpeak Properties, you can compare the effects of market volatilities on Medical Properties and Healthpeak 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 Medical Properties with a short position of Healthpeak Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Healthpeak Properties.
Diversification Opportunities for Medical Properties and Healthpeak Properties
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Medical and Healthpeak is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust, and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties 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 Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of Medical Properties i.e., Medical Properties and Healthpeak Properties go up and down completely randomly.
Pair Corralation between Medical Properties and Healthpeak Properties
Assuming the 90 days trading horizon Medical Properties Trust, is expected to generate 1.5 times more return on investment than Healthpeak Properties. However, Medical Properties is 1.5 times more volatile than Healthpeak Properties. It trades about 0.17 of its potential returns per unit of risk. Healthpeak Properties is currently generating about -0.01 per unit of risk. If you would invest 1,226 in Medical Properties Trust, on November 6, 2024 and sell it today you would earn a total of 140.00 from holding Medical Properties Trust, or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust, vs. Healthpeak Properties
Performance |
| Timeline |
| Medical Properties Trust, |
| Healthpeak Properties |
Medical Properties and Healthpeak Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Healthpeak Properties
The main advantage of trading using opposite Medical Properties and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Healthpeak 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 Healthpeak Properties will offset losses from the drop in Healthpeak Properties' long position.| Medical Properties vs. Marfrig Global Foods | Medical Properties vs. Spotify Technology SA | Medical Properties vs. Beyond Meat | Medical Properties vs. British American Tobacco |
| Healthpeak Properties vs. Cardinal Health, | Healthpeak Properties vs. HCA Healthcare, | Healthpeak Properties vs. Medical Properties Trust, | Healthpeak Properties vs. MAHLE Metal Leve |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |