Correlation Between Healthpeak Properties and Academy Sports
Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and Academy Sports 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 Healthpeak Properties and Academy Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and Academy Sports and, you can compare the effects of market volatilities on Healthpeak Properties and Academy Sports 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 Healthpeak Properties with a short position of Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and Academy Sports.
Diversification Opportunities for Healthpeak Properties and Academy Sports
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Healthpeak and Academy is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and Academy Sports and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports and Healthpeak 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 Healthpeak Properties are associated (or correlated) with Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and Academy Sports go up and down completely randomly.
Pair Corralation between Healthpeak Properties and Academy Sports
Assuming the 90 days trading horizon Healthpeak Properties is expected to generate 4.56 times more return on investment than Academy Sports. However, Healthpeak Properties is 4.56 times more volatile than Academy Sports and. It trades about -0.07 of its potential returns per unit of risk. Academy Sports and is currently generating about -0.35 per unit of risk. If you would invest 12,519 in Healthpeak Properties on November 4, 2024 and sell it today you would lose (447.00) from holding Healthpeak Properties or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Healthpeak Properties vs. Academy Sports and
Performance |
| Timeline |
| Healthpeak Properties |
| Academy Sports |
Healthpeak Properties and Academy Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthpeak Properties and Academy Sports
The main advantage of trading using opposite Healthpeak Properties and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.| Healthpeak Properties vs. Bread Financial Holdings | Healthpeak Properties vs. Credit Acceptance | Healthpeak Properties vs. Citizens Financial Group, | Healthpeak Properties vs. American Airlines Group |
| Academy Sports vs. Healthpeak Properties | Academy Sports vs. HCA Healthcare, | Academy Sports vs. METISA Metalrgica Timboense | Academy Sports vs. Universal Health Services, |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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