Correlation Between Healthpeak Properties and JD
Can any of the company-specific risk be diversified away by investing in both Healthpeak Properties and JD 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 JD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthpeak Properties and JD Inc, you can compare the effects of market volatilities on Healthpeak Properties and JD 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 JD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthpeak Properties and JD.
Diversification Opportunities for Healthpeak Properties and JD
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Healthpeak and JD is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Healthpeak Properties and JD Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc 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 JD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Inc has no effect on the direction of Healthpeak Properties i.e., Healthpeak Properties and JD go up and down completely randomly.
Pair Corralation between Healthpeak Properties and JD
Assuming the 90 days trading horizon Healthpeak Properties is expected to generate 1.18 times more return on investment than JD. However, Healthpeak Properties is 1.18 times more volatile than JD Inc. It trades about 0.03 of its potential returns per unit of risk. JD Inc is currently generating about 0.0 per unit of risk. If you would invest 12,190 in Healthpeak Properties on September 2, 2024 and sell it today you would earn a total of 1,122 from holding Healthpeak Properties or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.05% |
| Values | Daily Returns |
Healthpeak Properties vs. JD Inc
Performance |
| Timeline |
| Healthpeak Properties |
| JD Inc |
Healthpeak Properties and JD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthpeak Properties and JD
The main advantage of trading using opposite Healthpeak Properties and JD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthpeak Properties position performs unexpectedly, JD 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 JD will offset losses from the drop in JD's long position.| Healthpeak Properties vs. Fras le SA | Healthpeak Properties vs. Western Digital | Healthpeak Properties vs. Energisa SA | Healthpeak Properties vs. Clave Indices De |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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