Correlation Between PEAK Old and Global Medical
Can any of the company-specific risk be diversified away by investing in both PEAK Old and Global Medical 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 PEAK Old and Global Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEAK Old and Global Medical REIT, you can compare the effects of market volatilities on PEAK Old and Global Medical 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 PEAK Old with a short position of Global Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEAK Old and Global Medical.
Diversification Opportunities for PEAK Old and Global Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PEAK and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PEAK Old and Global Medical REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Medical REIT and PEAK Old 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 PEAK Old are associated (or correlated) with Global Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Medical REIT has no effect on the direction of PEAK Old i.e., PEAK Old and Global Medical go up and down completely randomly.
Pair Corralation between PEAK Old and Global Medical
If you would invest 759.00 in Global Medical REIT on November 2, 2024 and sell it today you would earn a total of 32.00 from holding Global Medical REIT or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
PEAK Old vs. Global Medical REIT
Performance |
| Timeline |
| PEAK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Medical REIT |
PEAK Old and Global Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEAK Old and Global Medical
The main advantage of trading using opposite PEAK Old and Global Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEAK Old position performs unexpectedly, Global Medical 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 Medical will offset losses from the drop in Global Medical's long position.| PEAK Old vs. Welltower | PEAK Old vs. Mid America Apartment Communities | PEAK Old vs. Regency Centers | PEAK Old vs. UDR Inc |
| Global Medical vs. Healthpeak Properties | Global Medical vs. Ventas Inc | Global Medical vs. National Health Investors | Global Medical vs. Sabra Healthcare 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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