Correlation Between Office Properties and American Healthcare
Can any of the company-specific risk be diversified away by investing in both Office Properties and American 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 Office Properties and American Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Office Properties Income and American Healthcare REIT,, you can compare the effects of market volatilities on Office Properties and American 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 Office Properties with a short position of American Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Office Properties and American Healthcare.
Diversification Opportunities for Office Properties and American Healthcare
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Office and American is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Office Properties Income and American Healthcare REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Healthcare REIT, and Office 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 Office Properties Income are associated (or correlated) with American Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Healthcare REIT, has no effect on the direction of Office Properties i.e., Office Properties and American Healthcare go up and down completely randomly.
Pair Corralation between Office Properties and American Healthcare
Considering the 90-day investment horizon Office Properties is expected to generate 4.55 times less return on investment than American Healthcare. In addition to that, Office Properties is 5.48 times more volatile than American Healthcare REIT,. It trades about 0.01 of its total potential returns per unit of risk. American Healthcare REIT, is currently generating about 0.25 per unit of volatility. If you would invest 2,636 in American Healthcare REIT, on August 30, 2024 and sell it today you would earn a total of 321.00 from holding American Healthcare REIT, or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Office Properties Income vs. American Healthcare REIT,
Performance |
| Timeline |
| Office Properties Income |
| American Healthcare REIT, |
Office Properties and American Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Office Properties and American Healthcare
The main advantage of trading using opposite Office Properties and American Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Office Properties position performs unexpectedly, American 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 American Healthcare will offset losses from the drop in American Healthcare's long position.| Office Properties vs. Hudson Pacific Properties | Office Properties vs. Piedmont Office Realty | Office Properties vs. City Office | Office Properties vs. Kilroy Realty Corp |
| American Healthcare vs. Boston Properties | American Healthcare vs. Douglas Emmett | American Healthcare vs. Kilroy Realty Corp | American Healthcare vs. Highwoods Properties |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |