Correlation Between Nexpoint Real and Eventide Healthcare
Can any of the company-specific risk be diversified away by investing in both Nexpoint Real and Eventide Healthcare 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 Nexpoint Real and Eventide Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexpoint Real Estate and Eventide Healthcare Life, you can compare the effects of market volatilities on Nexpoint Real and Eventide Healthcare 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 Nexpoint Real with a short position of Eventide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexpoint Real and Eventide Healthcare.
Diversification Opportunities for Nexpoint Real and Eventide Healthcare
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NexPoint and Eventide is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nexpoint Real Estate and Eventide Healthcare Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Healthcare Life and Nexpoint Real 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 Nexpoint Real Estate are associated (or correlated) with Eventide Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Healthcare Life has no effect on the direction of Nexpoint Real i.e., Nexpoint Real and Eventide Healthcare go up and down completely randomly.
Pair Corralation between Nexpoint Real and Eventide Healthcare
Assuming the 90 days horizon Nexpoint Real Estate is expected to generate 0.24 times more return on investment than Eventide Healthcare. However, Nexpoint Real Estate is 4.2 times less risky than Eventide Healthcare. It trades about 0.02 of its potential returns per unit of risk. Eventide Healthcare Life is currently generating about -0.02 per unit of risk. If you would invest 1,598 in Nexpoint Real Estate on November 1, 2024 and sell it today you would earn a total of 26.00 from holding Nexpoint Real Estate or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
Nexpoint Real Estate vs. Eventide Healthcare Life
Performance |
| Timeline |
| Nexpoint Real Estate |
| Eventide Healthcare Life |
Nexpoint Real and Eventide Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexpoint Real and Eventide Healthcare
The main advantage of trading using opposite Nexpoint Real and Eventide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexpoint Real position performs unexpectedly, Eventide Healthcare 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 Eventide Healthcare will offset losses from the drop in Eventide Healthcare's long position.| Nexpoint Real vs. Vanguard Total Stock | Nexpoint Real vs. Vanguard 500 Index | Nexpoint Real vs. Vanguard Total Stock | Nexpoint Real vs. Vanguard Total Stock |
| Eventide Healthcare vs. Vy Clarion Real | Eventide Healthcare vs. Nexpoint Real Estate | Eventide Healthcare vs. Sa Real Estate | Eventide Healthcare vs. Vanguard Reit Index |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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