Correlation Between Medical Properties and Kerry Logistics
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Kerry Logistics 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 Kerry Logistics 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 Kerry Logistics Network, you can compare the effects of market volatilities on Medical Properties and Kerry Logistics 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 Kerry Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Kerry Logistics.
Diversification Opportunities for Medical Properties and Kerry Logistics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Medical and Kerry is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and Kerry Logistics Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Logistics Network 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 Kerry Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Logistics Network has no effect on the direction of Medical Properties i.e., Medical Properties and Kerry Logistics go up and down completely randomly.
Pair Corralation between Medical Properties and Kerry Logistics
Considering the 90-day investment horizon Medical Properties Trust is expected to generate 0.87 times more return on investment than Kerry Logistics. However, Medical Properties Trust is 1.14 times less risky than Kerry Logistics. It trades about -0.02 of its potential returns per unit of risk. Kerry Logistics Network is currently generating about -0.03 per unit of risk. If you would invest 976.00 in Medical Properties Trust on September 1, 2024 and sell it today you would lose (537.00) from holding Medical Properties Trust or give up 55.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.75% |
| Values | Daily Returns |
Medical Properties Trust vs. Kerry Logistics Network
Performance |
| Timeline |
| Medical Properties Trust |
| Kerry Logistics Network |
Medical Properties and Kerry Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Kerry Logistics
The main advantage of trading using opposite Medical Properties and Kerry Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Kerry Logistics 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 Kerry Logistics will offset losses from the drop in Kerry Logistics' long position.| Medical Properties vs. Douglas Emmett | Medical Properties vs. Vornado Realty Trust | Medical Properties vs. Highwoods Properties | Medical Properties vs. Piedmont Office Realty |
| Kerry Logistics vs. Legacy Education | Kerry Logistics vs. Apple Inc | Kerry Logistics vs. NVIDIA | Kerry Logistics vs. Microsoft |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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