Correlation Between Plaza Retail and Global Healthcare
Can any of the company-specific risk be diversified away by investing in both Plaza Retail and Global 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 Plaza Retail and Global Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Retail REIT and Global Healthcare REIT, you can compare the effects of market volatilities on Plaza Retail and Global 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 Plaza Retail with a short position of Global Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Global Healthcare.
Diversification Opportunities for Plaza Retail and Global Healthcare
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plaza and Global is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT and Global Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Healthcare REIT and Plaza Retail 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 Plaza Retail REIT are associated (or correlated) with Global Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Healthcare REIT has no effect on the direction of Plaza Retail i.e., Plaza Retail and Global Healthcare go up and down completely randomly.
Pair Corralation between Plaza Retail and Global Healthcare
Assuming the 90 days horizon Plaza Retail REIT is expected to generate 0.16 times more return on investment than Global Healthcare. However, Plaza Retail REIT is 6.45 times less risky than Global Healthcare. It trades about 0.03 of its potential returns per unit of risk. Global Healthcare REIT is currently generating about 0.0 per unit of risk. If you would invest 270.00 in Plaza Retail REIT on August 25, 2024 and sell it today you would earn a total of 8.00 from holding Plaza Retail REIT or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Plaza Retail REIT vs. Global Healthcare REIT
Performance |
| Timeline |
| Plaza Retail REIT |
| Global Healthcare REIT |
Plaza Retail and Global Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Global Healthcare
The main advantage of trading using opposite Plaza Retail and Global Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail position performs unexpectedly, Global 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 Global Healthcare will offset losses from the drop in Global Healthcare's long position.| Plaza Retail vs. Choice Properties Real | Plaza Retail vs. CT Real Estate | Plaza Retail vs. Firm Capital Property | Plaza Retail vs. Slate Grocery REIT |
| Global Healthcare vs. Smart REIT | Global Healthcare vs. Phillips Edison Co | Global Healthcare vs. Simon Property Group | Global Healthcare vs. Plaza Retail REIT |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance |