Correlation Between Medical Properties and XTRA Bitcoin
Can any of the company-specific risk be diversified away by investing in both Medical Properties and XTRA Bitcoin 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 XTRA Bitcoin 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 XTRA Bitcoin, you can compare the effects of market volatilities on Medical Properties and XTRA Bitcoin 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 XTRA Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and XTRA Bitcoin.
Diversification Opportunities for Medical Properties and XTRA Bitcoin
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medical and XTRA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin 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 XTRA Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRA Bitcoin has no effect on the direction of Medical Properties i.e., Medical Properties and XTRA Bitcoin go up and down completely randomly.
Pair Corralation between Medical Properties and XTRA Bitcoin
Considering the 90-day investment horizon Medical Properties Trust is expected to under-perform the XTRA Bitcoin. But the stock apears to be less risky and, when comparing its historical volatility, Medical Properties Trust is 4.27 times less risky than XTRA Bitcoin. The stock trades about -0.08 of its potential returns per unit of risk. The XTRA Bitcoin is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.13 in XTRA Bitcoin on August 29, 2024 and sell it today you would earn a total of 0.01 from holding XTRA Bitcoin or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. XTRA Bitcoin
Performance |
| Timeline |
| Medical Properties Trust |
| XTRA Bitcoin |
Medical Properties and XTRA Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and XTRA Bitcoin
The main advantage of trading using opposite Medical Properties and XTRA Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, XTRA Bitcoin 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 XTRA Bitcoin will offset losses from the drop in XTRA Bitcoin'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 |
| XTRA Bitcoin vs. Apple Inc | XTRA Bitcoin vs. Microsoft | XTRA Bitcoin vs. Alphabet Inc Class C | XTRA Bitcoin vs. Meta Platforms |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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