Correlation Between Healthpeak Properties and Dollar General
Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and Dollar General 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 Dollar General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and Dollar General, you can compare the effects of market volatilities on Healthpeak Properties and Dollar General 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 Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and Dollar General.
Diversification Opportunities for Healthpeak Properties and Dollar General
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Healthpeak and Dollar is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and Dollar General go up and down completely randomly.
Pair Corralation between Healthpeak Properties and Dollar General
Assuming the 90 days trading horizon Healthpeak Properties is expected to generate 1.42 times more return on investment than Dollar General. However, Healthpeak Properties is 1.42 times more volatile than Dollar General. It trades about 0.02 of its potential returns per unit of risk. Dollar General is currently generating about -0.06 per unit of risk. If you would invest 13,369 in Healthpeak Properties on August 30, 2024 and sell it today you would lose (57.00) from holding Healthpeak Properties or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.25% |
| Values | Daily Returns |
Healthpeak Properties vs. Dollar General
Performance |
| Timeline |
| Healthpeak Properties |
| Dollar General |
Healthpeak Properties and Dollar General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthpeak Properties and Dollar General
The main advantage of trading using opposite Healthpeak Properties and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.| Healthpeak Properties vs. Paycom Software | Healthpeak Properties vs. Zoom Video Communications | Healthpeak Properties vs. Cognizant Technology Solutions | Healthpeak Properties vs. T Mobile |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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