Correlation Between Medical Properties and PEAK Old
Can any of the company-specific risk be diversified away by investing in both Medical Properties and PEAK Old 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 PEAK Old 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 PEAK Old, you can compare the effects of market volatilities on Medical Properties and PEAK Old 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 PEAK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and PEAK Old.
Diversification Opportunities for Medical Properties and PEAK Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Medical and PEAK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and PEAK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEAK Old 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 PEAK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEAK Old has no effect on the direction of Medical Properties i.e., Medical Properties and PEAK Old go up and down completely randomly.
Pair Corralation between Medical Properties and PEAK Old
If you would invest 443.00 in Medical Properties Trust on August 30, 2024 and sell it today you would lose (10.00) from holding Medical Properties Trust or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Medical Properties Trust vs. PEAK Old
Performance |
| Timeline |
| Medical Properties Trust |
| PEAK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Medical Properties and PEAK Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and PEAK Old
The main advantage of trading using opposite Medical Properties and PEAK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, PEAK Old 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 PEAK Old will offset losses from the drop in PEAK Old'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 |
| PEAK Old vs. Welltower | PEAK Old vs. Mid America Apartment Communities | PEAK Old vs. Regency Centers | PEAK Old vs. UDR Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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