Correlation Between Medical Properties and Apollo Commercial
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Apollo Commercial 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 Apollo Commercial 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 Apollo Commercial Real, you can compare the effects of market volatilities on Medical Properties and Apollo Commercial 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 Apollo Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Apollo Commercial.
Diversification Opportunities for Medical Properties and Apollo Commercial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Medical and Apollo is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and Apollo Commercial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Commercial Real 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 Apollo Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Commercial Real has no effect on the direction of Medical Properties i.e., Medical Properties and Apollo Commercial go up and down completely randomly.
Pair Corralation between Medical Properties and Apollo Commercial
Considering the 90-day investment horizon Medical Properties Trust is expected to under-perform the Apollo Commercial. In addition to that, Medical Properties is 3.32 times more volatile than Apollo Commercial Real. It trades about -0.08 of its total potential returns per unit of risk. Apollo Commercial Real is currently generating about 0.23 per unit of volatility. If you would invest 884.00 in Apollo Commercial Real on August 30, 2024 and sell it today you would earn a total of 46.00 from holding Apollo Commercial Real or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. Apollo Commercial Real
Performance |
| Timeline |
| Medical Properties Trust |
| Apollo Commercial Real |
Medical Properties and Apollo Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Apollo Commercial
The main advantage of trading using opposite Medical Properties and Apollo Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Apollo Commercial 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 Apollo Commercial will offset losses from the drop in Apollo Commercial's long position.| Medical Properties vs. Sabra Healthcare REIT | Medical Properties vs. LTC Properties | Medical Properties vs. Healthpeak Properties | Medical Properties vs. National Health Investors |
| Apollo Commercial vs. Ellington Residential Mortgage | Apollo Commercial vs. Ellington Financial | Apollo Commercial vs. Ares Commercial Real | Apollo Commercial vs. Cherry Hill Mortgage |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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