Correlation Between Medical Properties and Blackstone Mortgage
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Blackstone Mortgage 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 Blackstone Mortgage 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 Blackstone Mortgage Trust, you can compare the effects of market volatilities on Medical Properties and Blackstone Mortgage 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 Blackstone Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Blackstone Mortgage.
Diversification Opportunities for Medical Properties and Blackstone Mortgage
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Medical and Blackstone is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and Blackstone Mortgage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Mortgage Trust 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 Blackstone Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Mortgage Trust has no effect on the direction of Medical Properties i.e., Medical Properties and Blackstone Mortgage go up and down completely randomly.
Pair Corralation between Medical Properties and Blackstone Mortgage
Considering the 90-day investment horizon Medical Properties Trust is expected to generate 2.35 times more return on investment than Blackstone Mortgage. However, Medical Properties is 2.35 times more volatile than Blackstone Mortgage Trust. It trades about 0.02 of its potential returns per unit of risk. Blackstone Mortgage Trust is currently generating about 0.0 per unit of risk. If you would invest 437.00 in Medical Properties Trust on August 26, 2024 and sell it today you would lose (6.00) from holding Medical Properties Trust or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. Blackstone Mortgage Trust
Performance |
| Timeline |
| Medical Properties Trust |
| Blackstone Mortgage Trust |
Medical Properties and Blackstone Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Blackstone Mortgage
The main advantage of trading using opposite Medical Properties and Blackstone Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Blackstone Mortgage 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 Blackstone Mortgage will offset losses from the drop in Blackstone Mortgage'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 |
| Blackstone Mortgage vs. Starwood Property Trust | Blackstone Mortgage vs. Rithm Capital Corp | Blackstone Mortgage vs. AGNC Investment Corp | Blackstone Mortgage vs. Ares Commercial Real |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |