Correlation Between Medical Properties and Palantir Technologies
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Palantir Technologies 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 Palantir Technologies 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 Palantir Technologies, you can compare the effects of market volatilities on Medical Properties and Palantir Technologies 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 Palantir Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Palantir Technologies.
Diversification Opportunities for Medical Properties and Palantir Technologies
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Medical and Palantir is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust, and Palantir Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palantir Technologies 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 Palantir Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palantir Technologies has no effect on the direction of Medical Properties i.e., Medical Properties and Palantir Technologies go up and down completely randomly.
Pair Corralation between Medical Properties and Palantir Technologies
Assuming the 90 days trading horizon Medical Properties Trust, is expected to generate 0.68 times more return on investment than Palantir Technologies. However, Medical Properties Trust, is 1.46 times less risky than Palantir Technologies. It trades about -0.08 of its potential returns per unit of risk. Palantir Technologies is currently generating about -0.06 per unit of risk. If you would invest 1,266 in Medical Properties Trust, on October 12, 2024 and sell it today you would lose (67.00) from holding Medical Properties Trust, or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust, vs. Palantir Technologies
Performance |
| Timeline |
| Medical Properties Trust, |
| Palantir Technologies |
Medical Properties and Palantir Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Palantir Technologies
The main advantage of trading using opposite Medical Properties and Palantir Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Palantir Technologies 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 Palantir Technologies will offset losses from the drop in Palantir Technologies' long position.| Medical Properties vs. Broadridge Financial Solutions, | Medical Properties vs. ICICI Bank Limited | Medical Properties vs. Melco Resorts Entertainment | Medical Properties vs. The Hartford Financial |
| Palantir Technologies vs. GP Investments | Palantir Technologies vs. Delta Air Lines | Palantir Technologies vs. Monster Beverage | Palantir Technologies vs. Synchrony Financial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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